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Life and speeches of the Hon. Henry Clay ... (vol. 2)/ compiled and edited by Daniel Mallory.

Life and speeches of the Hon. Henry Clay ... (vol. 2)/ compiled and edited by Daniel Mallory. Clay, Henry, 1777-1852. 400dpi TIFF G4 page images University of Kentucky, Electronic Information Access & Management Center Lexington, Kentucky 2002 b92-84-27376479v2 Electronic reproduction. 2002. (Beyond the shelf, serving historic Kentuckiana through virtual access (IMLS LG-03-02-0012-02) ; These pages may be freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. Life and speeches of the Hon. Henry Clay ... (vol. 2) / compiled and edited by Daniel Mallory. Clay, Henry, 1777-1852. R.P. Bixby, New York : 1843-44. 2 v. ; ill., ports. ; 25 cm. Coleman "Life of Henry Clay": v. 1, p. [9]-193. Vol. 1: 2nd ed. ; vol. 2: 3rd ed. Microfilm. v. 1-2. Atlanta, Ga. : SOLINET, 1993. 1 microfilm reel ; 35 mm. (SOLINET/ASERL Cooperative Microfilming Project (NEH PS-20317) ; SOL MN02918.01 KUK) Printing Master B92-84. IMLS This electronic text file was created by Optical Character Recognition (OCR). No corrections have been made to the OCR-ed text and no editing has been done to the content of the original document. Encoding has been done through an automated process using the recommendations for Level 1 of the TEI in Libraries Guidelines. Digital page images are linked to the text file. United States Politics and government 1815-1861.Mallory, Daniel. .4: i At vJ A 4;i4 m . R, Amu i me I F , K-1 - , I A X +ai ( -\a g \ : .t "if ''i 4 I - "I ) Ir zjl Ma IIr -l ,-tX 1,., ) - -Z i n s au-l-ff ;4Kj a2 K I A't 1.X T a. A a '44. , o ' 2 n 7 i Y4, y +4 1 /pvf h / 4 '(t -! ( AtAg v ' ;y l i' '' ' ' ' '4 I X C I I ( - F " This page in the original text is blank. THE LIFE AND SPEECHES OF THE H O N. HENRY C L A Y, IN TWO VOLUMES. COMPILED AND EDITED BY DANIEL MALLORY. V O L U M E IU. Fbirb rEbition NE ROBERT W YORK: P. BIXBY CO. 1 844. Entered according to Act of Congress, in the Year Eighteen Hundred and Forty-Three, BY SAMUEL N. DICKINSON, In the Clerk's Office of the District Court of the District of Massachusetts. BOSTON: SAMUEL N. DICKINSON, PRINTER, WASHINGTON STREET. CONTENTS OF VOLUME II. SPEECH IN DEFENCE OF THE AMERICAN SYSTEM, . . . . . . . . 5 SPEECH ON THE PUBLIC LANDS. . . . . . . . . . . . . 6 SPEECH ON THE NORTHEASTERN BOUNDARY OF TIHE UNITED STATES, . 86 SPEECH ON PRESIDENT JACKSON'S VETO OF THE BILL TO RE-CHIARTER THE UNITED STATES BANK, . . . . . . . . . . . . . 94 SPEECH ON INTRODUCING THE COMPROMISE TARIFF BILL, .. 106 SPEECH IN SUPPORT OF THE COMIPROMISE TARIFF ACT,. . . . . . SPEECH IN SUPPORT OF THE COMPROMISE ACT . . . . . . . . .39 SPEECH ON THE PRESIDENT'S MESSAGE RETURNING THE PUBLIC LAND BILL. . . . . . . . . . . . . . . . . . . . . 141 SPEECH ON THE REMOVAL OF THE PUBLIC DEPOSITS FROM THE BANK OF THE UNITED STATES. . . . . . . . . . . . . . .145 SPEECH ON THE PUBLIC DISTRESS CAUSED BY THE REMOVAL OF THE DEPOSITS,. . . . . . . . . . . . . . . . . . . 191 SPEECH ON THE STATE OF THE COUNTRY FROM THE EFFECTS OF THE REMOVAL OF THE DEPOSITS . . . . . . . . . . . . .194 SPEECH ON THE STATE OF THE COUNTRY.. . . . . . ... 2 SPEECH ON OUR RELATIONS WITH FRANCE. . . . . . . . . .204 SPEECH ON OUR RELATIONS WITH THE CHEROKEE INDIANS, . . . . 208 SPEECH ON THE CUMBERLAND ROAD BILL,. . . . . . . . . . 227 SPEECH ON THE APPOINTING AND REMOVING POWER, . . . . . . 231 SPEECH ON TEIE PUBLIC LAND BILL,.. . . . . . . . . . .216 SPEECH ON OUR RELATIONS WITH FRANCE, . . . . . . . . . 25 SPEECH ON THE ADMISSION OF ARKANSAS INTO THE UNION . . . . . 255 SPEECH ON THE FORTIFICATION BILL,.. . . . . . . . . . 257 SPEECH ON RECOGNISING THIE INDEPENDENCE OF TEXAS . . . . . . 260 SPEECH ON THE EXPUNGING RESOLUTION,. . . . . . . . . . 4 SPEECH ON THE SUB-TREASURY BILL.9. . . . . . . . . . .29 C I CN T E N TS. SI'EECTI ON THE PRE-E-MPTION BILL. . . . . . . . . . . . 301 SPEECH ON THE SUB-TREASURY SCHEME. . . . . . . . . . .310 SPEECH ON THE DOCTRINE OF INSTRUCTION. . . . . . . . . 350 SPEECH ON PETITIONS FOR THE ABOLITION OF SLAVERY . . . . . .355 SPEECH AT BUFFALO, NEW YORK. . . . . . . . . . . . . 376 SPEECH ON THE LAND BILL PROPOSED BY MR. CALHOUN . . . . . . 380 SPEECH ON THE SUB-TREASURY BILL,. . . . . . . . . . . 384 SPEECH AT THE WHlIG NATIONAL CONVENTION OF YOUNG MlEN,. . . . 406 SPEECH ON THE STATE OF THE COUNTRY UNDER MR. VAN BUREN'S ADMINISTRATION. . . . . . . . . . . . . . . . . 408 SPEECH AT THE HARRISON CONVENTION. . . . . . . . . . . 427 SPEECH ON THE REPEAL OF THE SUB-TREASURY LAW . . . . . . 432 SPEECH ON THE DISTRIBUTION OF PROCEEDS OF TIlE PUBLIC LANDS,. .437 SPEECH IN DEFENCE OF MR. WEBSTER. . . . . . . . . . . 482 SPEECH ON THE VETO OF THE FISCAL BANK BILL BY PRESIDENT TYLER, . 4S5 SPEECH ON THE BANK VETO, . . . . . . . . . . . . . . 502 SPEECH ON A GENERAL BANKRUPT LAW. . . . . . . . . . .508 SPEECH ON THE AMENDMENT OF THE CONSTITUTION RESPECTING THE VETO POWER. . . . . . . . . . . . . . . . . . 512 SPEECH ON THE COMPROMISE TARIFF. . . . . . . . . . . . 30 SPEECH ON THE TARIFF AND OTHER MEASURES OF PUBLIC POLICY,. . 532 VALEDICTORY ADDRESS TO TIlE SENATE.5. . . . . . . . . . 52 SPEECH ON HIS RETIREMENT TO PRIVATE LIFE, . . . . . . . . 569 SPEECH ON SLAVERY AND ABOLITION. . . . . . . . . . . . 595 ixr SP EE CH ES. IN DEFENCE OF THE AMERICAN SYSTEM. IN THE SENATE OF THE UNITED STATES, FEB. 2D, 3D, AND 6TH, 1832 [ D URING the session of congress in 1832, in consequence of the violent opposition to the protective tariff then in operation, by South Carolina and other southern states, various propositions were introduced for the reduction of duties on imported articles. which finally resulted in the passage of a new tariff law. in July, 1832. This bill which was reported in the house of representatives by Mr. John Quincy Adams, although it was voted for by many southern members, on the ground of its being a reduction of the former scale of duties, was not satisfactory to them, and the contro- versy on the subject of the tariff was not settled until the following year, when Mr. Clay's compromise bill was adopted, providing for a gradual diminution of the tariff of 1832. In the following speech, Mr. Clay, in reply to Mr. Hayne, of South Carolina, and others, enters into a minute and careful examination of the American system, and its effects on the interests of the country; defending, with his usual skill and eloquence, the doctrine of protection to domestic industry. This effort adds another monument to his wisdom and fame, which will, we believe, be referred to by statesmen, who seek the true interests of the country, through all future ages of the republic. The resolution offered by Mr. Clay in January, proposing a reduction of duties on certain imported articles not coming in competition with our manufactures, which he had supported in the foregoing speech of January eleventh, was still under consideration. ] IN one sentiment, Mr. President, expressed by the honorable gentleman from South Carolina (general Hayne), though perhaps not in the sense intended by him, I entirely concur. I agree with him, that the decision on the system of policy embraced in this debate, involves the future destiny of this growing country. One way, I verily believe, it would lead to deep and general distress, general bankruptcy, and national ruin, without benefit to any part of the union; the other, the existing prosperity will be preserved and augmented, and the nation will continue rapidly to advance in wealth, power, and greatness, without prejudice to any section of the confederacy. SPEECHES OF HENRY CLAY. Thus viewing the question, I stand here as the humble but zealous advocate, not of the interests of one state, or seven states only, but of the whole union. And never before have I felt, more intensely, the overpowering weight of that share of responsibility which belongs to me in these deliberations. Never before have I had more occasion than I now have, to lament my want of those intellectual powers, the possession of which might enable me to unfold to this senate and to illustrate to this people great truths, intimately connected with the lasting welfare of my country. I should, indeed, sink overwhelmed and subdued beneath the appalling magnitude of the task which lies before me, if I did not feel myself sustained and fortified by a thorough consciousness of the justness of the cause which I have espoused, and by a persuasion, I hope not presumptuous, that it has the approbation of that Providence who has so often smiled upon these United States. Eight years ago, it was my painful duty to present to the other house of congress an unexaggerated picture of the general distress pervading the whole land. We must all yet remember some of its frightful features. We all know that the people were then oppressed, and borne down by an enormous load of debt; that the value of property was at the lowest point of depression ; that ruinous sales and sacrifices were every where made of real estate; that stop laws, and relief laws, and paper money were adopted, to save the people from impending destruction; that a deficit in the public revenue existed, which compelled government to seize upon, and divert from its legitimate object, the appropriations to the sink- ing fund, to redeem the national debt; and that our commerce and navigation were threatened with a complete paralysis. In short, sir, if I were to select any term of seven years since the adoption of the present constitution which exhibited a scene of the most wide-spread dismay and desolation, it would be exactly that term of seven years which immediately preceded the establish- ment of the tariff of 1824. I have now to perform the more pleasing task of exhibiting an imperfect sketch of the existing state of the unparalleled prosperity of the country. On a general survey, we behold cultivation extended, the arts flourishing, the face of the country improved, our people fully and profitably employed, and the public counte- nance exhibiting tranquillity, contentment, and happiness. And if we descend into particulars, we have the agreeable contemplation of a people out of debt; land rising slowly in value, but in a secure and salutary degree; a ready though not extravagant market for all the surplus productions of our industry; innumerable flocks and herds browsing and gamboling on ten thousand hills and plains, covered with rich and verdant grasses; our cities expanded, and whole villages springing up, as it were, by enchantment; our exports and imports increased and increasing; our tonnage, foreign 6 IN DEFENCE OF THE AMERICAN SYSTE9T. and coastwise, swelling and fully occupied; the rivers of our interior animated by the perpetual thunder and lightning of count- less steamboats; the currency sound and abundant; the public debt of two wars nearly redeemed; and, to crown all, the public treasury overflowing, embarrassing congress, not to find subjects of taxation, but to select the objects which shall be liberated from the impost. If the term of seven years were to be selected, of the greatest prosperity which this people have enjoyed since the estab- lishment of their present constitution, it would be exactly that period of seven years which immediately followed the passage of the tariff of 1824. This transformation of the condition of the country from gloom and distress to brightness and prosperity, has been mainly the work of American legislation, fostering American industry, instead of allowing it to be controlled by foreign legislation, cherishing foreign industry. The foes of the American system, in 1824, with great boldness and confidence, predicted, first, the ruin of the public revenue, and the creation of a necessity to resort to direct taxation; the gentleman from South Carolina (general Hayne), I believe, thought that the tariff of 1824 would operate a reduction of revenue to the large amount of eight millions of dollars; secondly, the destruction of our navigation; thirdly, the desola- tion of commercial cities; and, fourthly, the augmentation of the price of objects of consumption, and further decline in that of the articles of our exports. Every prediction which they made has failed, utterly failed. Instead of the ruin of the public revenue, with which they then sought to deter us from the adoption of the American system, we are now threatened with its subversion, by the vast amount of the public revenue produced by that system. Every branch of our navigation has increased. As to the desola- tion of our cities, let us take, as an example, the condition of the largest and most commercial of all of them, the great northern capital. I have, in my hands, the assessed value of real estate in the city of New York, from 1817 to 1831. This value is canvassed, contested, scrutinized, and adjudged, by the proper sworn authorities. It is, therefore, entitled to full credence. During the first term, commencing with 1817, and ending in the year of the passage of the tariff of 1824, the amount of the value of real estate was, the first year, fifty-seven million seven hundred and ninety-nine thousand four hundred and thirty-five dollars, and, after various fluctuations in the intermediate period, it settled down at fifty-two million nineteen thousand seven hundred and thirty dollars, exhibiting a decrease, in seven years, of five million seven hundred and seventy-nine thousand seven hundred and five dollars. During the first year, of 1825, after the passage of the tariff, it rose, and, gradually ascending throughout the whole of the latter period of seven years, it finally, in 1831, reached the astonishing height of ninety- 7 SPEECHES OF HENRY CLAY. five million seven hundred and sixteen thousand four hundred and eighty-five dollars! Now, if it be said, that this rapid growth of the city of New York was the effect of foreign commerce, then it was not correctly predicted, in 1824, that the tariff would destroy foreign commerce, and desolate our commercial cities. If, on the contrary, it be the effect of internal trade, then internal trade cannot be justly chargeable with the evil consequences imputed to it. The truth is, it is the joint effect of both principles, the domestic industry nourishing the foreign trade, and the foreign commerce in turn nourishing the domestic industry. Nowhere more than in New York is the combination of both principles so completely developed. In the progress of my argument, I will consider the effect upon the price of commodities produced by the American system, and show that the very reverse of the prediction of its foes, in 1824, actually happened. Whilst we thus behold the entire failure of all that was foretold against the system, it is a subject of just felicitation to its friends, that all their anticipations of its benefits have been fulfilled, or are in progress of fulfilment. The honorable gentleman from South Carolina has made an allusion to a speech made by me, in 1824, in the other house, in support of the tariff and to which, otherwise, I should not have particularly referred. But I would ask any one, who can now command the courage to peruse that long produc- tion, what principle there laid down is not true what prediction then made has been falsified by practical experience It is now proposed to abolish the system, to which we owe so much of the public prosperity, and it is urged that the arrival of the period of the redemption of the public debt has been confidently looked to as presenting a suitable occasion to rid the country of the evils with which the system is alleged to be fraught. Not an inattentive observer of passing events, I have been aware that, among those who were most early pressing the payment of the public debt, and, upon that ground, were opposing appropriations to other great interests, there were some who cared less about the debt than the accomplishment of other objects. But the people of the United States have not coupled the payment of their public debt with the destruction of the protection of their industry, against foreign laws and foreign industry. 'They have been accustomed to regard the extinction of the public debt as relief from a burden, and not as the infliction of a curse. If it is to be attended or followed by the subversion of the American system, and an expo- sure of our establishments and our productions to the unguarded consequences of the selfish policy of foreign powers, the payment of the public debt will be the bitterest of curses. Its fruit will be like the fruit 'Of that forbidden tree, whose mortal taste Brought death into the world, and all our woe, With loss of ;Eden.' 8 IN DEFENCE OF THE AIMERICAN SYSTE. A. If the system of protection be founded on principles erroneous in theory, pernicious in practice, above all, if it be uncons: itutionial, as is alleged, it ought lo be forthwith abolished, and not a vestige of it suffered to remain. But, before we sanction this swveepin;g denunciation, let us look a little at this system, its nmagnitiude, its ramifications, its duration, and the high authorities which have sustained it. We shall see that its foes wvill have accomplished comparatively nothing, after having achieved their present aim, of breaking down our iron-founderies, our woollen, cotton, and hemp manufactories, and our sugar-plantations. The destruction of these would, undoubtedly, lead to the sacrifice of immense capital, the ruin of many thousands of our fellow-citizens, and incalculable loss to the whole community. But their prostration would not disfigure nor produce greater effct upon the whole system of protection, in all its branches, than the destruction of the beautiful domes upon the capitol would occasion to the magnificent edifice which they surmount. Why, sir, there is scarcely an interest, scarcely a vocation in society, which is not embraced by the benefi- cence of this system. It comprehends our coasting tonnage and trade, from which all foreign tonnage is absolutely excluded. It includes all our foreign tonnage, with the inconsiderable exception made by treaties of reciprocity with a few foreign powers. It embraces our fisheries, and all our hardy and enterprising fishermen. It extends to almost every mechanic art-to tanners, cordwainers, tailors, cabinet-makers, hatters, tin iers, brass-workers, clock-makers, coach-makers, tallow-chandlers, trace-makers, rope-makers, cork- cutters, tobacconists, whip-makers, paper-makers, umbrella-malkers, glass-blowers, stockiing-weavers, butter-makers, saddle and harness- makers, cutlers, brush-makers, book-binders, dairy-men, milk-farm- ers, black-smiths, type-founders, niusical instrume nt-mankers, basket- makers, milliners, potters, chocolate-makers, floor-cloth-makers, bonnet-makers, hair-cloth-mnakers, copper-smiths, pencil-makers, bellows-mak ers, pocket-book-makers, card-makers, glue-makers, mustard-m akers, lumber-sawyers, saw-rnmakers, scale-beam-makers, sithe-makers, wood-saw-mankers, and many others. The mechanies enumerated, enjoy a measure of protection adapted to their several conditions, varying from twenty to fifty per cent. The extent and importance of sorne of these artisans, may be estimated by a few particulars. The tanners, curriers, boot and shoe makers, and other workers in hides, skins, and leather, produce an ultimate value per annum of forty millions of dollars; the manufacturers of hats and caps, prodnee an annual value of fifteen millions; the cabinet-makers, twelve rmillions; the manufacturers of bonnets and hats for the female sex, lace, artificial flowers, combs, and so forth, seven millions; and the manufacturers of glass, five inillions. VOL. 1I. 2 9 1 SPEECHES OF HENRY CLAY. It extends to all lower Louisiana, the delta of which might as well be submerged again in the Gulf of Mexico, from which it has been a gradual conquest, as now to be deprived of the protecting duty upon its great staple. It affects the cotton-planter himself, and the tobacco-planter, both of whom enjoy protection. The total amount of the capital vested in sheep, the land to sustain them, wool, woollen manufactures, and woollen fabrics, and the subsistence of the various persons directly or indirectly employed in the growth and manufacture of the article of wool, is estimated at one hundred and sixty-seven millions of dollars, and the number of persons at one hundred and fifty thousand. The value of iron, considered as a raw material, and of its manu- factures. is estimated at twenty-six millions of dollars per annum. Cotton goods, exclusive of the capital vested in the manufacture, and of the cost of the raw material, are believed to amount, annually, to about twenty millions of dollars. These estimates have been carefully made, by practical men of undoubted character, who have brought together and embodied their information. Anxious to avoid the charge of exaggeration, they have sometimes placed their estimates below what was believed to be the actual amount of these interests. With regard to the quantity of bar and other iron annually produced, it is derived from the known works themselves; and I know some in western states which they have omitted in their calculations. Such are somne of the items of this vast system of protection, which it is now proposed to abandon. We might well pause and contemplate, if human imagination could conceive the extent of mischief and ruin from its total overthrow, before we proceed to the work of destruction. Its duration is worthy also of serious consideration. Not to go behind the constitution, its date is coeval with that instrument. It began on the ever-memorable fourth day of July - the fourth day of July, 17S9. The second act which stands recorded in the statute-book, bearing the illustrious signature of George Washington, laid the corner-stone of the whole system. That there might be no mistake about the matter, it was then solemnly proclaimed to the American people and to the world, that it was necessary for ' the encouragement and protection of manu- factures,' that duties should be laid. It is in vain to urge the small amount of the measure of the protection then extended. The great principle was then established by the fathers of the constitu- tion, with the father of his country at their head. And it cannot now be questioned, that, if the government had not then been new' To say nothing of cotton produced in other foreign countries, the cultivation of this article, of a very superior quality, is constantly extending in the adjacent Mexi- can provinces, and but for the duty, probably, a large amount would be introduced into the United States, down Red river and along the coast of the Gulf of Mexico. 10 IN DEFENCE OF THE AMERICAN SYSTEM. and the subject untried, a greater measure of protection would have been applied, if it had been supposed necessary. Shortly after, the master ininds of Jefferson and Hamilton were brought to act on this interesting subject. Taking views of it appertaining to the departments of foreign affairs and of the treasury, which they respectively filled, they presented, severally, reports which yet remain monuments of their profound wisdom, and came to the same conclusion of protection to American industry. Mr. Jefferson argued that foreign restrictions, foreign prohibitions, and foreign high duties, ought to be met at home by American restrictions, American prohibitions, and American high duties. Mr. Hamilton, surveying the entire ground, and looking at the inherent nature of the subject, treated it with an ability, which, if ever equalled, has not been surpassed, and earnestly recommended protection. The wars of the French revolution commenced about this period, and streams of gold poured into the United States through a thousand channels, opened or enlarged by the successful commerce which our neutrality enabled us to prosecute. We forgot or overlooked, in the general prosperity, the necessity of encouraging our domestic manufactures. Then came the edicts of Napoleon, and the British orders in council; and our embargo, non-intercourse, non-importation, and war, followed in rapid succession. These national measures, amounting to a total suspension, for the period of their duration, of our foreign commerce, afforded the most efficacious encouragement to American manufactures; and accord- ingly they every where sprung up. While these measures of restriction and this state of war continued, the manufacturers were stimulated in their enterprise by every assurance of support, by public sentiment, and by legislative resolves. It was about that period (1808) that South Carolina bore her high testimony to the wisdom of the policy, in an act of her legislature, the preamble of which, now before me, reads: 'Whereas, the establishment and encouragement of domestic manufactures, is conducive to the interests of a state, by adding new incentives to industry. and as being the means of disposing to advantage the surplus productions of the agriculturist: and whereas, in the present unexampled state of the world, their establishment in our country is not only expedient, but politic, in rendering us independent of foreign nations 1. The legislature, not being competent to afford the most efficacious aid, by imposing duties on foreign rival articles, proceeded to incorporate a company. Peace, under the treaty of Ghent, returned in 1815, but there did not return with it the golden days which preceded the edicts levelled at our commerce by Great Britain and France. It found all Europe tranquilly resuming the arts and the business of civil life. It found Europe no longer the consumer of our surplus, and the employer of our navigation, but excluding, or heavily 11l 2 SPEECHES OF HENRY CLAY. burdening, almost all the productions of our agriculture, and our rivals in manufactures, in navigation, and in commerce. It found our country, in short, in a situation totally different from all the past -new and untried. It became necessary to adapt our laws, and especially our laws of impost, to the new circumstances in which we found ourselves. Accordingly, that eminent and lamented citizen, then at the head of the treasury, (Mr. Dallas,) was required, by a resolution of the house of representatives, under date of the twenty-third of February, 1815,to prepare and report to the succeeding session of congress, a system of revenue coiforrnable with the actual condition of the country. He had the circle of a whole year to perform the work, consulted merchants, manufacturers, and other practical men, and opened an extensive correspondence. The report which he made at the session of 1816, was the result of his inquiries and reflections, and embodies the principles which he thought applicable to the subject. It has been said, that the tariff of 1S16 was a measure of mere revenue, and that it only reduced the war duties to a peace standard. It is true, that the question then was, how much and in what way should the double duties of the war be reduced Now, also, the question is, on what articles shall the duties be reduced so as to subject the amounts of the future revenue to the wants of the government Then it was deemed an inquiry of the first importance, as it should be now, how the reduction should be made, so as to secure proper encouragement to our domestic industry. That this was a leading object in the arrangement of the tariff of 1816, I well remember, and it is demonstrated by the language of Air. Dallas. He says, in his report: 'There are few, if any governments, which do not regard the establishment of domestic manufactures as a chief object of public policy. The United States have alivays so regarded it. The demands of the country, while the acquisitions of supplies from foreign nations was either prohibited or impracti- cable. may have afforded a sufficient inducement for this investment of capital, and this application of' labor: bkt the inducement, in its necessary extent, must fail when the (lay of competition returns. Upon that change in the condition of the country. the preservation of the manufactures, which private citizens under favorable auspices jave constituted the property of the nation, becomes a consideration of general policy, to be resolved by a recollection of past embarrassments; by the certainty of an increased difficulty of reinstating, upon any emergency, the manufactures which shall be allowed to perish and pass away,' and so forth. The measure of protection which he proposed was not adopted, in regard to some leading articles, and there was great difficulty in ascertaining what it ought to have been. But the principle was then distinctly asserted and fully sanctioned. The subject of the American system was again brought up in 1820, by the bill reported by the chairman of the committee cf manufactures, now a member of the bench of the supreme court of the United States, and the principle was successfully maintained 12 IN DEFENCE OF THE AMERICAN SYSTE. al. by the representatives of the people; but the bill which they passed was defeated in the senate. It was revived in 1824; the whole ground carefully and deliberately explored, and the bill then intro- duced, receiving all the sanctions of the constitution, became the law of the land. An amendment of the system was proposed in 1828, to the history of which I refer with no agreeable recollections. The bill of that year, in some of its provisions, was framed on principles directly adverse to the declared wishes of the friends of the policy of protection. I have heard, without vouching for the fact, that it was so framed, upon the advice of a prominent citizen, n1w abroad, with the view of ultimately defeating the bill, and with assurances that, being altogether unacceptable to the friends of the American system, the bill would be lost. Be that as it may, the most exceptionable features of the bill were stamped upon it, against the earnest remonstrances of the friends of the system, by the votes of southern members, upon a principle, I think, as unsound in legislation as it is reprehensible in ethics. The bill -was passed, notwithstanding, it having been deemed better to take the bad along with the good which it contained, than reject it altogether. Subsequent legislation has corrected the error then perpetrated, but still that measure is vehemently denounced by gentlemen who contributed to make it what it was. Thus, sir, has this great system of protection been gradually built, stone upon stone, and step by step, from the fourth of July, 1789, down to the present period. In every stage of its progress it has received the deliberate sanction of congress. A vast majority of the people of the United States has approved and continue to approve it. Every chief magistrate of the United States, from Washington to the present, in some form or other, has given to it the authority of his name; and, however the opinions of the existing president are interpreted south of Mason and Dixon's line, on the north they are at least understood to favor the establish- ment of a judicious tariff. The question, therefore, which we are now called upon to deter- mine, is not, whether we shall establish a new and doubtful system of policy, just proposed, and for the first time presented to our consideration, but whether we shall break down and destroy a long established system, patiently and carefully built up and sanctioned, during a series of years, again and again, by the nation and its Ili-,hest and most revered authorities. And are we not bound deliberately to consider whether we can proceed to this work of destruction without a violation of the public faith The people of the United States have justly supposed that the policy of protecting their industry against foreign legislation and foreign industry was fully settled, not by a single act, but by repeated and deliberate acts of government, performed at distant and frequent intervals. In full confidence that the policy was firmly and unchangeably fixed, 13 4 SPEECHES OF HENRY CLAY. thousands upon thousands have invested their capital, purchased a vast amount of real and other estate, made permanent establish- ments, and accommodated their industry. Can we expose -to utter and irretrievable ruin this countless multitude, without justly incurring the reproach of violating the national faith I shall not discuss the constitutional question. Without meaning any disrespect to those who raise it, if it be debatable, it has been sufficiently debated. The gentleman from South Carolina suffered it to fall unnoticed from his budget; and it was not until after he had closed his speech and resufned his seat, that it occurred to him that he had forgotten it, when he again addressed the senate, and, by a sort of protestation against any conclusion from his silence, put forward the objection. The recent free-trade convention at Philadelphia, it is well known, were divided on the question; and although the topic is noticed in their address to the public, they do not avow their own belief that the American system is unconsti- tutional, but represent that such is the opinion of respectable portions of the American people. Another address to the people of the United States, from a high source, during the past year, treating this subject, does not assert the opinion of the distinguished author, but states that of others to be, that it is unconstitutional. From which I infer that he did not himself believe it to be uncon- stitutional. [Here the vice-president interposed, and remarked, that, if the senator from Ken- tucky alluded to him, he must say that his opinion was, that the measure was unconstitutional.] When, sir, I contended with you, side by side, and with perhaps less zeal than you exhibited, in 1816, I did not understand you then to consider the policy forbidden by the constitution. [The vice-president again interposed, and said, that the constitutional question was not debated at that time, and that he had never expressed an opinion contrary to that now intimated.] I give way with pleasure to these explanations, which I hope will always be made when I say any thing bearing on the individual opinions of the chair. I know the delicacy of the position, and sympathize with the incumbent, whoever he may be. It is true, the question was not debated in 1816; and why not Because it was not debatable; it was then believed not fairly to arise. It never has been made as a distinct, substantial, and leading point of objection. It never was made until the discussion cf the tariff of 1824, when it was rather hinted at as against the spirit of the constitution, than formally announced as being contrary to the provisions of that instrument. What was not dreamed of before, or in 1816, and scarcely thought of in 1824, is now made, by excited 14 IN DEFENCE OF T HE AMERICAN SYSTEM. imaginations, to assume the imposing form of a serious constitu- tional barrier. Such are the origin, duration, extent, and sanctions, of the policy which we are now called upon to subvert. Its beneficial effects, although they may vary in degree, have been felt in all parts of the union. To none, I verily believe, has it been prejudicial. In the north, every w",here, testimonials are borne to the high prosperity which it has diffused. There, all branches of industry are animated and flourishing. Commerce, foreign and domestic, active; cities and towns springing up, enlarging and beautifying; navigation fully and profitably employed, and the whole face of the country smiling with improvement, cheerfulness, and abundance. The gentleman from South Carolina has supposed that we in the west derive no advantages from this system. He is mistaken. Let him visit us, and he will find, from the head of La Belle Riviere, at Pittsburgh, to America, at its mouth, the most rapid and gratifying advances. He will behold Pittsburgh itself, Wheeling, Portsmouth, Maysville, Cincinnati, Louisville, and numerous other towns, lining and ornamenting the banks of the noble river, daily extending their limits, and prosecuting, with the greatest spirit and profit, numerous branches of the manufacturing and mechanic arts. If he will go into the interior, in the state of Ohio, he will there perceive the most astonishing progress in agriculture, in the useful arts, and in all the improvements to which they both directly conduce. Then let him cross over into my own, mv favorite state, and contemplate the spectacle which is there exhibited. He will perceive numerous villages, not large, but neat, thriving, and some of them highly ornamented; many manufactories of hemp, cotton, wool, and other articles. In various parts of the country, and especially in the Ellkhorn region, an endless succession of natural parks; the forests thinned; fallen trees and undergrowth cleared away; large herds and flocks feeding on luxuriant grasses; and interspersed with comfortable, sometimes elegant mansions, surrounded by extensive lawns. The honorable gentleman from South Carolina says, that a profitable trade was carried on from the west, through the Seleuda gap, in mules, horses, and other live stock, which has been checked by the operation of the tariff. It is true, that such a trade was carried on between Kentucky and South Carolina, mutually beneficial to both parties; but, several years ago, resolutions, at popular meetings, in Carolina, were adopted, not to purchase the produce of Kentucky, by wav of punishment for her attachment to the tariff. They must have supposed us as stupid as the sires of one of the descriptions of the stock of which that trade consisted, if they imagined that their resolutions would affect our principles. Our drovers cracked their whips, blew their horns, and passed the Seleuda gap, to other markets, where better humors existed, and equal or greater profits 6 SPEECHES OF HENRY CLAY. were made. I have heard, of your successor in the house of repre- sentatives, Mr. President, this anecdote: that he joined in the adoption of those resolutions, but when, about Christmas, lie applied to one of his South Carolina neighbors, to purchase the regular supply of pork for the ensuing year, he found that he had to pay two prices for it; and he declared, if that were the patriotism on which the resolutions were based, he would not conform to them, and, in point of fact, laid in his annual stock of pork by purchase from the first passing Kentucky drover. The trade, now partially resumed, was maintained by the sale of western produc- tions, on the one side, and Carolina money on the other. From that condition of it, the gentleman from South Carolina might have drawn this conclusion, that an advantageous trade may exist, although one of the parties to it pays in specie for the production which he purchases from the other; and consequently that it does not follow, if we did not purchase British fabrics, that it might not be the interest of England to purchase our raw material of cotton. The Kentucky drover received the South Carolina specie, or, taking bills, or the evidences of deposit in the banks, carried these home, and, disposing of them to the merchant, he brought out goods, of foreign or domestic manufacture, in return. Such is the circuitou5 nature of trade and remittance, which no nation understands better than Great Britain. Nor has the system which has been the parent source of so much benefit to other parts of the union, proved injurious to the cotton- growing country. I cannot speak of South Carolina itself, where I have never been, with so much certainty; but of other portions of the union in which cotton is grown, especially those bordering on the Mississippi, I can confidently speak. If cotton-planting is less profitable than it was, that is the result of increased production but I believe it to be still the most profitable investment of capital of any branch of business in the United States. And if a committee were raised, with power to send for persons and papers, I take it upon myself to say, that such would be the result of the inquiry. In Kentucky, I know many individuals who have their cotton- plantations below, and retain their residence in that state, where they remain during the sickly season; and they are all, I believe, without exception, doing well. Others, tempted by their success, are constantly engaging in the business, while scarcely any comes from the cotton region to engage in western agriculture. A friend, now in my eye, a member of this body, upon a capital of less than seventy thousand dollars, invested in a plantation and slaves, made, the year before last, sixteen thousand dollars. A member of the other house, I understand, who, without removing himself, sent some of his slaves to Mississippi, made last year about twenty per cent. Two friends of mine, in the latter state, whose annual income is from thirty to sixty thousand dollars, being desirous lo 16 IN DEFENCE OF THE AMERICAN SYSTEM. 1. curtail their business, have offered estates for sale which they are willing to show, by regular vouchers of receipt and disburseniieut, yield eighteen per cent per annumn. One of my most opulent acquaintances, in a county adjoining that in which 1. reside, having married in Georgia, has derived a large portion of his wealth from a cotton estate there situated. 'The loss of the tonnage of Charleston, which has been dwelt on, does not proceed from the tariff; it never had a very large amount, and it has not been able to retainl what it had, in conse- quence of the operation of the principle of free trade On its navigation. Its tonnage has gone to the more enterprising and adventurous tars of the northern states, with whom those of the city of Charleston could not maintain a successful competition, in the freedom of the coasting trade, existing between the difierent parts of the union. That this must be the true cause, is demon- strated by the fact, that, however it may be wxith the port of Charles- ton, our coasting tonnage, generally, is constantly increasing. As to the foreign tonnage, about one half of that which is engaged in the direct trade between Charleston and Great Britain, is English ; proving that the tonnage of South Carolina cannot maintain itself in a competition, under the free and equal navigation secured by our treaty with that power. When gentlemen have succeeded in their design of an imme- diate or gradual destruction of the American system, w" hat is their substitute Free trade Free trade! The call for free trade is as unavailing, as the cry of a spoiled child in its nurse's arms, for the moon, or the stars that glitter in the firmament of heaven. It never has existed, it never will exist. Trade implies at least two parties. 'ro be free, it should be fair, equal, an(I reciprocal. But if we throw our ports wide open to the admission of foreign productions, free of all duty, what ports of any other foreign nation shall we find open to the free admission of our surplus produce We may break downvii all barriers to free trade on our part, but the work wvill not be complete, until foreign powers shall have removed theirs. There would be freedom on one side, and restrictions, prohibitions, and exclusions, on the other. The bolts and the bars and the chains of all other nations will remain undis- turbed. It is, indeed, possible, that our industry and commerce would accommodate themselves to this unequal and unjust state of things; for, such is the flexibility of our nature, that it bends itself to all circumstances. The wretched prisoner incarcerated in a jail, after a long time, becomes reconciled to his solitude, and regularly notches down the passing days of his confinement. Gentlemen deceive themselves. It is not free trade that they are recommending to our acceptance. It is, in effect, the British colonial system that wve are invited to adopt; and, if their p)olicy prevail, it will lead substantially to the recolonization of these VOL. 11. 3 17 1 SPEECHES OF HEN RY CLAY. states, under the commercial dominion of Great Britain. And whom do we find some of the principal supporters, out of congress, of this foreign system Mr. President, there are some foreigners who always remain exotics, and never become naturalized in our country; whilst, happily, there are many others who readily attach themselves to our principles and our institutions. The honest, patient, and industrious German, readily unites with our people; establishes himself upon some of our fat land, fills his capacious barn, and enjoys in tranquillity the abundant fruits which his diligence gathers around him; always ready to fly to the standard of his adopted country, or of its laws, when called by the duties of patriotism. The gay, the versatile, the philosophic Frenchman, accommodating himself cheerfully to all the vicissitudes of life, incorporates himself without difficulty, in our society. But, of all foreigners, none amalgamate themselves so quickly with our people as the natives of the Emerald isle. In some of the visions which have passed through my imagination, I have supposed that Ireland was originally part and parcel of this continent, and that, by some extraordinary convulsion of nature, it was torn from America, and, drifting across the ocean, was placed in the unfortunate vicinity of Great Britain. The same open-heartedness; the same generous hospitality; the same careless and uncalculating indifference about human life; characterize the inhabitants of both countries. Ken- tucky has been sometimes called the Ireland of America. And I have no doubt, that if the current of emigration were reversed, and set from America upon the shores of Europe instead of bearing from Europe to America, every American emigrant to Ireland would there find, as every Irish emigrant here finds, a hearty welcome and a happy home! But, sir, the gentleman to whom I am about to allude, although long a resident of this country, has no feelings, no attachments, no sympathies, no principles, in common with our people. Nearly fifty years ago, Pennsylvania took him to her bosom, and warmed, and cherished, and honored him; and how does lie manifest his grati- tude By aiming a vital blow at a system endeared to her by a thorough conviction that it is indispensable to her prosperity. He has filled, at home and abroad, some of the highest offices under this government, during thirty years, and he is still at heart an alien. The authority of his name has been invoked, and the labors of his pen, in the form of a memorial to congress, have been engaged, to overthrow the American system, and to substitute the foreign. Go home to your native Europe, and there inculcate upon her sovereigns your Utopian doctrines of free trade, and when you have prevailed upon them to unseal their ports, and freely admit the produce of Pennsylvania and other states, come back, and we shall be prepared to become converts, and to adopt your faith. is IN DEFENCE OF THE AMERICAN SYSTEM. 1. A MIr. Sarchet also makes no inconsiderable figure in the common attack upon our system. I do not know the man, but I understand he is an unnaturalized emigrant, from the island of Guernsey, situated in the channel which divides France and England. The principal business of the inhabitants is that of driving a contraband trade with the opposite shores, and Mr. Sarchet, educated in that school, is, I have been told, chiefly engaged in employing his wits to elude the operation of our revenue laws, by introducing articles at less rates of duty than they are justly chargeable with, which he effects by varying the denom- inations, or slightly changing their forms. This man, at a former session of the senate, caused to be presented a memorial, signed by some one hundred and fifty pretended workers in iron. Of these, a gentleman made a careful inquiry and examination, and he ascertained that there were only about ten of the denomnination represented; the rest were tavern keepers, porters, merchants' clerks, hackney coachmen, and so forth. I have the most respect- able authority, in black and white, for this statement. Here general Hayne asked, who and was he a manufacturer Mr. Clay replied, colonel Murrav, of Newv York, a gentleman of the highest standing, for honor, probity, and veracity; that he did not know whether he was a manufacturer or not. but the gentleman might take him as one.] Whether iAIr. Sarchet got up the late petition presented to the senate, from the journeymen tailors of Philadelphia, or not, I do not know. But I should not be surprised if it were a movement of his, and if we should find that he has cabbaged from other classes of society to swell out the number of signatures. To the facts manufactured by Air. Sarchet, and the theories by Mr. Gallatin, there was yet wanting one circumstance to recom- mend them to favorable consideration, and that was, the authority of some high name. There was no difficulty in obtaining one from a British repository. The honorable gentleman has cited a speech of my lord Goderich, addressed to the British parliament, in favor of free trade, and full of deep regret that old England could not possibly conform her practice of rigorous restriction and exclusion to her liberal doctrines of unfettered commerce, so earnestly recommended to foreign powers. Sir, I know my lord Goderich very well, although my acquaihtance with him was prior to his being summoned to the British house of peers. We both signed the convention between the United States and Great Britain, of 1815. He is an honorable man, frank, possessing but ordinary business talents, about the stature and complexion of the honorable gentleman from South Carolina, a few years older than he, and every drop of blood running in his veins being Mr. Clay subsequently understood that colonel Murray was a merchant. 19 2 SPEECHES OF HENRY CLAY. pure and unadulterated Anglo-Saxon blood. If he were to live to the age of M ethuselah, he could not make a speech of such ability and eloquence as that which the gentleman from South Carolina recently delivered to the senate; and there would be much more fitness in my lord Goderich making quotations from the speech of the honorable gentleman, than his quoting, as authority, the theo- retical doctrines of my lord Goderich. We are too much in the habit of looking abroad, not merely for manufactured articles, but for the sanction of high names, to support favorite theories. I have seen and closely observed the British parliament, and, without derogating from its justly elevated character, I have no hesitation in saying, that in all the attributes of order, dignity, patriotism, and eloquence, the American congress would not suffer, in the smallest degree, by a comparison with it. I dislike this resort to authority, and especially foreign and interested authority, for the support of principles of public policy. I would greatly prefer to meet gentlemen upon the broad ground of fact, of experience, and of reason; but, since they will appeal to British names and authority, I feel myself compelled to imitate their bad example. Allow me to quote from the speech of a member of the British parliament, bearing the same family name with my lord Goderich, but whether or not a relation of his, I do not know. The member alluded to, was arguing against the violation of the treaty of Methuen -that treatv not less fatal to the interests of Portugal than would be the system of gentlemen to the best interests of America- and he went on to say: ' It wras idle for us to endeavor to persuade other nations to join with us in adopting the principles of what was called 'free trade.' Other nations knew, as ucil as the noble lord opposite, and those who acted with him, what we meant by 'free trade.' was nothing more nor less than, by means of the great advantages we enjoycd, to get a mnonopoly of all their marketsfor our manufactures, and to prevent them, one and all, from ever beroming mnanu. factioring nations. When the system of reciprocity and free trade had been proposed to a French ambassador, his remark was, that the plan was excellent in theory, but, to make it fair in practice, it would be necessary to defer the attempt to put it in execution for half a century, until France should be on the same footing with Great Britain, in marine, in manufactures, in capital, and the many other peculiar advan- tages which it now enjoyed. The policy that France acted on, was that of encour- aging its native manufactures, and it was a wise policy; because, if it were fleely to admit our manufactures, it would speedily be reduced to the rank of an agricultural nation; and therefore, a poor nation, as all must be that depend exolusively upon agri- culture. America acted, too, upon the same principle with France. America legislated for futurity-legislated for an increasing population. America, too. was prospering under this system. In twenty years, America would be independent of ngland for manufactures altogether. But since the peace, France, Germany, America, and all the other countries of the world, had proceeded upon the principle of encouraging and protecting native manufactures.' But I have said, that the system nominally called ' free trade,' so earnestly and eloquently recommended to our adoption, is a mere revival of the British colonial system, forced upon us by Great Britain during the existence of our colonial vassalage. The whole 20 IN DEFENI E OF THE AMERICAN' SYSTEM. 21 system is fully explained and illustrated in a work published as far back as the year 1750, entitled 'the trade and navigation of Great Britain considered, by Joshua Gee,' with extracts from which I have been furnished by the diligent researches of a friend. It will be seen from these, that the South Carolina policy now, is identical with the long-cherisbed policy of Great Britain, which remains the same as it wits when the thirteen colonies were part of the British emnpire. Ill that work the author contends: 'First, that manufactures, in American colonies, should be discouraged or prohibited. I Great Britain. with its dependencies, is doubtless as well able to subsist within itself, as any nation in Europe. We have an enterprising people, fit for all the arts of peace and war. We have provisions in abundance, and those of the best sort, and are able to raise suiflicient for double the number of inhabitants. We have the very best materials for clothing, and want nothing. either for use. or even for luxury, but what we have at home, or rnigint have from our colonies; so that we might make such an intercourse of trade among ourselves, or between us and them, as would maintain a vast navigation. But wve ought always to keep a watchful eye over our colonies. to restrain them from setting up any of the manulkctures which are carried on in Great Britain ; and any such attempts should be crushed in the beginning; for if they are suffered to grow up to maturity, it will be difficult to suppress them.' Pages 177. 8, 9. i Our colonies are much in the same state Ireland was in, when they began the woollen manufactory, and as their numbers increase, will fall upon manufactures for clothing themselves, if due care be not taken to find employment for them, in raising such productions as may enable them to furnish themselves with all their necessaries from us.' Then it was the object of the British economists to adapt the means or wealth of the colonists to the supply required by their necessities, and to malke the mother country the source of that supply. Now it seems the policy is only so far to be reversed, that we must continue to import necessaries from Great Britain, in order to enable her to purchase raw cotton from us. ' I should, therefore, think it worthy the care of the government, to endeavor, by all possible means, to encourage them in raising of silk. hemp, flax, iron. [only pig, to be hammered in England,] potash, and so forth, by giving them competent bounties in the beginning, and sending over judicious and skilful persons at the public charge, to assist and instruct them in the most proper methods of management, which, in my apprehension, would lay a foundation for establishing the most profitable trade of any we have. And considering the commanding situation of our colonies along the sea-coast, the great convenience of navigable rivers in all of them, the cheapness of land, and the ea-iness of raising provisions, great numbers of people would transport themselves thither, to settle upon such improvements. Now, as people have been filled with fears that the colonies, if encouraged to raise rough materials, would set up for themselves, a little regulation would remove all those jealousies out of the way. They have never thrown or wove any silk, as yet, that we have heard of. Therefore, if a law was made to prohibit the use of eveiy throwsterls mill, of doubling or horsling silk with any machine whatever. they would then send it to us rate. And as they will have the providing rough materials to themselves, so shall we have the manufacturing of them. If encouragement be given for raising hemp, flax, and so forth, doubtless they will soon begin to manufacture, if not pretented. Therefore, to stop the progress of any such manufacture, it is proposed, that no weaver shall have liberty to set up any looms, without first registering, at an office kept for that purpose, and the name and place of abode of any journeyman that shall work for him. But if any particular inhabitant shall be inclined to have any linen or woollen made of their own spinning, they should not be abridged of the sante liberty that they now -make 22 SPEECHES OF HENRY CLAY. use of, namely, to carry to a weaver, (who shall be lieensed by the governor,) and have it wrought up for the use of the family, but not to be sold to any person in a private manner, nor exposed to any market or ftair, upon pain of forfeiture. 'And, inasmuch as they have been supplied with all their manufactures from hence, except what is used in building of ships, and other country work, one half of our exports being supposed to be in NAIMS-a manufacture which they allow has never hitherto been carried on among them -it is proposed they shall, for time to come, never erect the manufacture of any, under the size of a two-shilliog nail, horse- nails excepted; that all slitting mills and engines, for drawing wire, or weaving stockings, be put dowen, and that every smith who keeps a common forge or shop, shall register his name and place of abode, and the name of every servant which he shall employ, which license shall be renewed once every year. and pay for the liberty of working at such trade. That all negroes shall be prohibited from weaving either linen or woollen, or spinning or combing of wool, or working at any manufacture of iron, further than making it into pig or bar iron. That they also be prohibited fromt manufacturing hats, stockings, or leather of any kind. This limitation will not abridge the planters of any privilege they now enjoy. On the contrary, it will turn their industry to promoting and raising those rough materials.' The author then proposes, that the board of trade and plantations should be furnished with statistical accounts of the variouspermitted manufactures, to enable them to encourage or depress the industry of the colonists, and prevent the danger of interference with British industry. 'It is hoped that this method would allay the heat that some people have shown for destroying the iron-works on the plantations, and pulling down all their forges, taking away, in a violent manner, their estates and properties, preventing the husbandmen from getting their ploughshares, carts, and other utensils mended, destroying the manufacture of ship-building, by depriving them of the liberty of making bolts, spikes, and other things proper for carrying on that work, by which article returns are made for purchasing our woollen manufactures.' Pages 87, SS, 89. Such is the picture of colonists dependent upon the mother country for their necessary supplies, drawn by a writer who was not among the number of those who desired to debar them the means of building a vessel, erecting a forge, or mending a plough- share, but who was willing to promote their growth and prosperity as far as was consistent with the paramount interests of the man- ufacturing or parent state. ' Secondly, the advantages to Great Britain, from keeping the colonists dependent on her for their essential supplies. ' If we examine into the circumstances of the inhabitants of our plantations, and our own, it will appear, that not one fourth part of their product redounds to their own profit ; for, out of all that comes here, they only carry back clothing. and other accommodations for their families, all of which is of the merchandise and manufac- ture of this kingdom.' After showing how this system tends to concentrate all the sur- plus of acquisition over absolute expenditure in England, he says: 'All these advantages we receive by the plantations, besides the mortgages on the planters' estates, and the high interest they pay us, which is very considerable: and therefore very great care ought to be taken in regulating all the affairs of the colonists, that the planters be not put under too many diwfficulties, but encouraged to go on cheerfully. IN DEFENCE OF THE AMERICAN SYSTEM. 23 I Ntw Enrland, and the northern colonies, have not commodities and products enough to send us, in return, for purchasing their necessary clothing, but are under very great difijulties, and therefore any ordinary sort sell with them. And when they have grown out offashion with us, they are uew-fashioned enough there.' Sir, I cannot go on with this disgusting detail. Their refuse goods, their old shop-keepers, their cast-off clothes good enough for us! Was there ever a scheme more artfully devised, by wvhich the energies and faculties of one people should be kept down, and rendered subservient to the pride and the pomp and the power of another The system then proposed differs only from that which is now reCOmlmendled in one particular- that was intended to be enforced by power; this would not be less effectually executed by the force of circumstances. A gentleman in Boston (Mr. Lee), The agent of the free-trade convention, from whose exhaustless mint there is a constant issue of reports, seems to envy the blessed condition of dependent Canada, wichen compared to the oppressed state of this union; and it is a fair inference from the view which he presents, that he would have us hasten back to the golden days of that colonial bondage, which is so well depicted in the work from which I have been quotin.g. Mr. Lee exhibits two tabular statements, in one of which he presents the high duties which lie represents to be paidl in the ports of the United States, and in the other, those which are paid in Canada, generally about two per centum ad valoremn. But did it not occur to hin, that the duties levied in Canada are paid chiefly in British manufactures, or on articles passing fromn one part to another of a common empire and that, to present a parallel case in the United States, he ought to have shown, that importations made into one state from another, which are now free, are subject to the same or higher duties than are paid in Canada I will now, Mr. President, proceed to a more particular consid- eration of the arguments urged against the protective system, and an inquiry into its practical operation, especially on the cotton- growing country. And as I wish to state and meet the argument fairly, I invite the correction of my statement of it. if necessary. It is alleged, that the system operates prejudicially to the cotton planter, by diminishing the foreign demand for his staple; that we cannot sell to Great Britain unless we buy from her; that the import duty is equivalent to an export duty, and falls upon the cotton grower; that South Carolina pays a disproportionate quota of the public revenue; that an abandonment of the protective policy would lead to an augmentation of our exports, of an amount not less than one hundred and fifty millions of dollars; and, finally, that the south cannot partake of the advantages of manufacturing, if there be any. Let us examine these various propositions in detail. First, that the foreign demand for cotton is diminished. and that we cannot sell to Great Britain unless we buy from her. 23 2 SPEECHES OF HENRY CLAY. The demand of both our great foreign customers is constantly and annually increasinlg. It is true, that the ratio of the increase may not be equal to that of production; but this is owing' to the fact, that the power of producing the raw material is much greater, and is, therefore, constantly in advance of the power of consumption. A single fact will illustrate. The average produce of laborers engaged in the cultivation of cotton, may be estimated at five bales, or fifteen hundred weight to the hand. Supposing the annual average consumption of each individual who uses cotton cloth, to be five pounds, one hand can produce enough of the raw material to clothe three hundred. The argument comprehends two errors, one of fact and the other of principle. It assumes that we do not in fact purchase of Great Britain. What is the true state of the case There are certain, but very fewv articles which it is thought sound policy requires that we should manufacture at home, and on these the tariff operates. But, vith respect to all the rest, and much the larger number of articles of taste, fashion, and utility, they are subject to no other than revenue duties, and are freely introduced. I have before me from the treasury a statement of our imports from England, Scotland, and Ireland, including ten years, preceding the last, and three quarters of the last year, from which it will appear that, although there are some fluctuations ill the amount of the different years, the largest amount imported in any one year has been since the tariff of 1824, and that the last year's importation, when the returns of the fourth quarter shall be received, will probably be the greatest in the whole term, of eleven years. Now, if it be admitted that there is a less amount of the protected articles imported from Great Britain, she may be, and probably is, compensated for the deficiency, by the increased consumption in America of ihe articles of her industry not falling within the scope of the policy of our protection. The establishment of manufac- tures among us excites the creation of wealth, and this gives new powers of consumption, which are gratified by the purchase of foreign objects. A poor nation can never be a great consuming nation. Its poverty will limit its consumption to bare subsistence. The erroneous principle which the argument includes, is, that it devolves on us thel duty of taking care that Great Britain shall be enabled to purchase from us without exacting from Great Britain the corresponding duty. If it be true on one side that nations are bound to shape their policy in reference to the ability of foreign powers, it must be true on both sides, of the Atlantic. Andl this reciprocal obligation ought to be emphatically regarded towards the nation supplying the raw material, b' the manufacturing nation, because the industry of the latter gives four or five values to what had been produced by the industry of the former. But, does Great Britain practice towards us upon the principles 24 IN DEFENCE OF THE A1ERICAN SYSTE. N 2. which we are now required to observe in regard to her The exports to lle united Iiingdoyn, as appears from the sane treasury statement just adverted to, during eleven years, from 1821 to 1,S3J, and exclusive of the fourtl quarter of the last year, fall short of' the amount of imlports by upwards of forty-six millions of dollars, and the total amount, whriea the returns of that quarter are received, -will exceed fifty millions of dollars! It is surprising how wve have been able to sustain, for so long a time, a trade so very unequal. We must have been absolutely ruined by it, if the unfavorable balance had not been neutralized by more profitable commerce with other parts of the world. Of all nations, Great Britain has the least cause to comlplain of the trade betwveen the two countries. Our imports from that single power are nearly one. third of the entire amount of our importations from all foreign countries logether. Great Britain constantly acts on the maxim of buying only what she wants and cannot produce, and selling to foreign nations 1he utmost amount she can. In conformity with this maxim, she excludes articles of prime necessity produced by us, equally if not more necessary than any of her indtistry wvhich we tax, although the admission of those articles would increase our ability to purchase from her, according to the argument of gentlemen. If we purchased still less from Great Britain thuri we do, and our conditions were reversed, so that the value of her imports from, this country exceeded that of her exports to it, she would only then be compelled to do wvhat wve have so long done, and what South Carolina does, in her trade with Kentucky, malke up for the unila- vorable balance bv trade wvith other pla(es and countries. How does she now dispose of the one hundred and sixty millions of dollars worth of cotton fabrics, which she annually sells Of that amount the United States do not purchase five per centur. What becomes of the other ninety-five per centum Is it not sold to other powvers, and would not their markets remain, if ours were totally shut WVould she not continue, as she now finds it her interest, to purchase the raw material from us, to supply those markets Would she be guilty of the folly of depriving herself of markets to the amount of upwards of one hundred and fifty millions of dollars, because we refused her a market for some eight or ten millions But if there were a diminution of the British demand for cotton equal to the loss of a market for the few British fabrics which are within the scope of our protective policy, the question would still remain, whether the cotton-planter is not amply indemnified by the creation of additional demand elsewhere 'With respect to the cotton-grower, it is the totality of the demand, and not its distribu- tion, which affects his interests. If any system of policy wtill augment the aggregate of the demand, that system is favorable to his interests, although its tendency may be to varv the theatre of the demand. It could not, for example, be injurious to him, if, VOL. II. 4 2;, 2 SPEECHES OF HENRY CLAY. instead of Great Britain continuing to receive the entire quantity of cotton which she now does, two or three hundred thousalld bales of it were taken to the other side of the channel, and increased to that extent the French demand. It would be better for him, because it is always better to have several markets than one. Now if, instead of a transfer to the opposite side of the channel, of those two or three hundred thousand bales, they are transported to the northern states, can that be injurious to the cotton-grower Is it not better for him Is it not better to have a market at home, unaffected by war, or other foreign causes, for that amount of his staple If the establishment of American manufactures, therefore, had the sole effect of creating a new and an American demand for cotton, exactly to the same extent in which it lessened the British demand, there would be no just cause of complaint against the tariff. The gain in one place would precisely equal the loss in the other. But the true state of the matter is much more favorable to the cotton-grower. It is calculated that the cotton manufactories of the IUnited States absorb at least two hundred thousand bale:3 of cotton annually. I believe it to be more. The two ports of Boston and Providence alone received during the last year near one hundred and ten thousand bales. The amount is annually increasing. The raw material of that two hundred thousand bales is worth six millions, and there is an additional value conferred by the manufacturer of eighteen millions; it being generally calculated that, in such cotton fabrics as we, are in the habit of mnaking, the manufacture constitutes three fourths of the value of the article. If, therefore, these twenty-four millions worth of cotton fabrics were not made in the United States, but were manufactured in Great Britain, in order to obtain them, we should have to add to the already enormous disproportion between the amount of our imports and exports, in the trade with Great Britain, the further sum of twenty-four millions, or, deducting the price of the raw material, eighteen millions! And will gentlemen tell me how it would be possible for this country to sustain such a ruinous trade From all that portion of the United States lying north and east of James river, and west of the mountains, Great Britain receives comparatively nothing. How would it be possible for the inhabitants of that largest portion of our territory, to supply themselves with cotton fabrics, if they were brought from England exclusively They could not do it. But for the existence of the American manufacture, they would be compelled greatly to curtail their supplies, if not absolutely to suffer in their comforts. By its existence at home, the circle of those exchanges is created, which reciprocally diffuses among all who are embraced within it the productions of their respective industry. The cotton-grower sells the raw material to the manufacturer; he buys the iron, the bread, the meal, the coal, and the countless 26 IN DEFENCE OF THE AMERICAN SYSTEM. number of objects of his consumption from his fellow-citizens, and they in turn purchase his fabrics. Putting it upon the ground merely of supplying those with necessary articles who could not otherwise obtain them, ought there to be from any quarter an objection to the only system by which that object can be accom- plished But can there be any doubt, with those who will reflect, that the actual amount of cotton consumed is increased by the home mnariulacture The main argument of gentlemen is founded upon the idea of mutual ability resulting from mutual exchanges. They would furnish an ability to foreign nations by purchasing from them, and I, to our owean people, by exchanges at home. If the American manufacture were discontinued, and that of England were to take its place, how would she sell the additional quantity of twentv-four millions of cotton goods, which we now make To us, That has been shown to be impracticable. To other foreign nations She has already pushed her supplies to them to the utmost extent. The ultimate consequence would then be, to diminish the total consumption of cotton, to say nothing now of the reduction of price that would take place by throwing into the ports of Great Britain the two hundred thousand bales, which, no longer being manufactured in the United States, would go thither. Second, that the import duty is equivalent to an export duty, and falls on the producer of cotton. [Here general Hayne explained, and said, that he never contended that an import duty was equivalent to an export duty, under all circumstances; he had explained in his speech his ideas of the precise operation of the existing system. To which Mr. Clay replied that he had seen the argument so stated in some of the ingenious essays from the South Carolina press, and would therefore answer it.] The framers of our constitution, by granting the power to con- gress to lay imports, and prohibiting that of laying an export duty, manifested that they did not regard them as equivalent. Nor does the common sense of mankind. An export duty fastens upon, and incorporates itself with, the article on which it is laid. The article cannot escape from it-it pursues and follows it, wherever the article goes; and if, in the foreign market, the supply is above or just equal to the demand, the amount of the export duty will be a clear deduction to the exporter from the price of the article. But an inmport duty on a foreign article leaves the exporter of the domestic article free, first, to import specie; secondly, goods which are free from the protecting duty; or, thirdly, such goods as, being chargeable with the protecting duty, he can sell at home, and throw the duty on the consumer. But, it is confidently argued that the import duty falls upon the grower of cotton; and the case has been put in debate, and again and again in conversation, of the South Carolina planter, who exports one hundred bales of cotton to Liverpool, exchanges them 27 2 SPEECHES OF HENRY CLAY. for one hundred bales of merchandise, and when he brings them homne, being compelled to leave at tie cuslomr-house forty bales in tile forin of duities. The argument is founded on the assumption thataduty of forty per centum amounts to a subtraction of forty from the one hundred bales of merchandise. The first objection to it is, that it supposes a case of barter, which never occurs. If it be replied, that it nevertheless occurs in the operations of commerce, the answver would be that, since the export of Carolina cotton is chiefiv made by New York or foreign merchants, the loss s:atc(, if it really accrued, would fall upon them, and not upon the planter. B3ut, to test tile correctness of the hypothetical case, let us suppose that the duty, instead of forty per cent um, should be one hundred and fifty, which is asserted to be the duty in some cases. Tihell, lile planter would not only lose the whole hundred bales of merehall- dise, wvhich he had gotten for his hundred bales of cotton, but he would have to purchase, wilh other means, an additional fifty bales, in order to enable him to pay the duties accruing oin the proceeds ofi he coiton. Another answer is, that if the producer of cotion ill America, exchanged against English fabrics, pays the duty, the plroducer of those fabrics also pays it, and then it is twice paid. Such must be the consequence, unless the principle is true on one side of the Atlantic, and false onl the other. The true answer is, thlt the exporter of an article, if he invests its proceeds in a foreign Markel, takes care to make the investment in such merchandise as, when brought home, he can sell with a fair profit; and, conse- quentlv, the consumer would pay the original cost and charges, 'an( j)rofit. Third. TIle next objection to the American system is, that it subjects South Carolina to the payment of an undue propor- tion of the public revenue. The basis of this objection is the assumption, shown to have been erroneous, that the producer of the exports from this country pays the duty on its imports, instead of the consumer of those imports. The amount which South Carolina really contributes to the public revenue, no more than that of any other state, can be precisely ascertained. It depends upon her consumption of articles paying duties, and we may make an approximation sufficient for all practical purposes. T're cotton-planters of the valley of the Mississippi with "whom I am acquainted, generally expend about one third of their income in the support of their families and plantations. On this subject I hold in mv hands a statement from a friend of mine, of great accuracy, and a member of the senate. According to this state- nient, in a crop cf ten thousand dollars, the expenses may fluctuate letween twvo thousand eight hundred dollars and three thousand two hundred dollars. Of this suim, about one fourth, from seven to eight hundred dollars, may be laid out in articles paying the protective duty; the residue is disbursed for provisions, mules, 28 IN DEF-ENCE OF THE AMERICAN SYSTEM. M 9 horses, oxen, wages of overseer, c. Estimating the exports of Soudli Carolina at eigyht millions. one third is two million six hundred and sixty-six thousand six hundred and sixty-six dollars; of which one fourth will be six hundred and sixty-six thousand six hundred and sixty-six and two thirds dollars. Nowv, supposing the protecting duty to be fifty per cenlum, and that it all enters into the price of the article, the amount paid by South Carolina would only be three hundred and thirty-three thousand three hundred and thirty-three and one third dollars. But the total revenue of the United States may be stated at twenty-five millions, of wvhich the proportion of South Carolina, whatever standard, whether of xxvealh or population, be adopted, would be about one million. Of course, on this view of the subject, she actually pays only about one third of her fair and legitimate share. I repeat, that I have no personal knoxwledge of the habits of actual expenditure in South Carolina; they may be greater than I have stated, in respect to other parts of the cotton country; but if they are, that fact does not arise from any defect in the system of public policy. Fourth. An abandonment of the American system, it is urged, -would lead to all addition to our exports of one hundred and fifty nillions of dollars. The amount of one hundred and fifty millions of cotton in the raw state, would produce four hundred and fifty millions in the manufactured state, supposing no greater measure of value to be communicated, in the manufactured form, than that w-hich our industry imparts. Now sir, where would markets be found for this vast addition to the supply Not in the United States, certainly, nor in any other quarter of the globe, England having already everywhere pressed her cotton manufactures to the utmost point of repletion. We must look out for new worlds, seek for new and unknown races of mortals, to consume this immense increase of cotton fabrics. [General Hayne said, that he diat not mean that the increase of one hundred and fifty millions to the amount of our exports would be of cotton alone, but of other articles.] What other articles Agricultural produce-bread-stuffs, beef and pork, and so forth Where shall we find markets for themr Whit her shall wre go To what country, whose ports are not hermetically sealed against their admission Break down the home-market and you are without resource. Destroy all other interests in the country, for the imaginary purpose of advancing the cotton-planling interest, and you inflict a positive injury, without the smallest practical benefit to the cotton-planter. Could Charleston, or the whole south, when all other markets are prostrated, or shut against the reception of the surplus of our farmers, receive that surplus Would they buy more than they might want for their own consumption Could they find markets which other parts of the 29 0 SPEECHES OF HENRY CLAY. union could not Would gentlemen force the freemen of all north of James river, east and wvest, like ihe miserable slave, on the Sabbath day, to repair to Charleston, with a turkey under his arm, or a pack upon his back, and beg the clerk of some English or Scotch merchant, living in his gorgeous palace, or rolling in his splendid coach in the streets, to exchange his 'truck' for a bit of flannel to cover his naked wife and children! No! I am sure that I do no more than justice to their hearts, when 1 believe that they would reject what I believe to be the inevitable effects of their policy. Fifth. But it is contended, in the last place, that the south cannot, from physical and other causes, engage in the manufac- turing arts. I deny the premises, and I deny the conclusion. I deny the fact of inability; and, if it existed, I deny the conclusion, that we must, therefore, break down our manufactures, and nourish those of foreign countries. The south possesses, in an extraor- linary degree, two of the most important elements of manufacturing industry-water-power and labor. The former gives to our whole country a most decided advantage over Great Britaiii. But a single experiment, stated by the gentleman from South Carolina, in which a faithless slave put the torch to a manufacturing establishment, has discouraged similar enterprises. We have in Kentucky the same description of population, and we employ them, almost excli- sively, in many of our hemp manufactories. A neighbor of mine, one of our most opulent and respectable citizens, has had one, two, if not three, manufactories burnt by incendiaries; but he perse- vered, and his perseverance has been rewarded with wealth. We found that it was less expensive to keep night-watches than to pay premiums for insurance, and we employed them. Let it be supposed, however, that the south cannot manufacture; must those parts of the union which can, be therefore prevented Must we support those of foreign countries I ain sure that injustice would be done to the generous and patriotic nature of South Carolina, if it were believed that she envied or repined at the success of other portions of the union in branches of industry to which she might happen not to be adapted. Throughout her whole career she has been liberal, national, high-minded. The friends of the American system have been reminded by the honorable gentleman from Maryland (general Smith), that they are the majority, and he has admonished them to exercise their power in moderation. The majority ought never to trample upon the feelings, or violate the just rights, of the minority. They ought never to triumph over the fallen, nor to make any but a temperate and equitable use of their power. But these counsels come with an ill grace from the gentleman from Maryland. He, too, is a member of a majority-a political majority. And how has the administration of that majority exercised their power in this 30 IN DEFENCE OF THE AMERICAN SYSTEM. 31 country Recall to your recollection the fourth of March, 1829, when the lank, lean, famished forms, from fen and forest, and the four quarters of the union, gathered together in the halls of patronage; or stealing by evening's twilight into the apartments of the president's mansion, cried out, with ghastly faces, and in sepul- chral tones, 'give us bread! give us treasury pap! give us our reward!' England's bard was mistaken; ghosts will sometimes come, callvd or uncalled. Go to the families who were driven from the employments on which they were dependent for subsistence, in consequence of their exercise of the dearest right of freemen. Go to mothers, while hugging to their bosoms their starving children. Go to fathers, who, after being disqualified by long public service for any other business, were stripped of their humble places, and then sought, by the millions of authority, to be stripped of all that was left theni-their good names-and ask, what mercy was shown to them! As for myself, born in the midst of the revolution, the first air that I ever breathed on my native soil of Virginia having been that of liberty and independence, I never expected justice, nor desired mercy, at their hands; and scorn the wrath and defy the oppression of power. I regret, Mr. President, that one topic has, I think, unnecessarily been introduced into this debate. I allude to the charge brought against the manufacturing system, as favoring the growth of aristo- cracy. If it were true, would gentlemen prefer supporting foreign accumulations of wealth, by that description of industry, rattler than in their own country But is it correct The joint stock companies of the north, as I understand them., are nothing more than associations, sometimes of hundreds, bv means of which the small earnings of many are brought into a common stock, and the associates, obtaining corporate privileges, are enabled to prosecute, under one superintending head, their business to better advantage. Nothing can be more essentially democratic or better devised to counterpoise the influence of individual wvealth. In Kentucky, almost every manufactory known to me, is in the hands of enter- prising and self-made men, who have acquired whatever wealth they possess by patient and diligent labor. Comparisons are odious, and but in defence would not be made by me. But is there more tendency to aristocracy in a manufactory, supporting hundreds of freemen, or in a cotton plantation, with its not less numerous slaves, sustaining perhaps only two white families- that of the master and the overseer I pass, with pleasure, from this disagreeable topic, to two general propositions which cover the entire ground of debate. The first is, that, under the operation of the American system, the objects which it protects and fosters are brought to the consumer at cheaper prices than they commanded prior to its introduction, or, than they would command if it did not exist. If that be true, ought not the 31 2 SPEECHES OF HENRY CLAY. country to be contented and satisfied with tbe system, unless the second proposition, which I mean presently also to consider, is unfounded AiAnd that is, that the tendency of the system is lo sustain, and that it has upheld, the prices of all our agricultural and other produce, including cotton. And is the fact not indisputable, that all essential objects of consumption affected by the tariff, are cheaper and better since the act of 1824, than they were for several years prior to that law I appeal for its truth to common observation, and to all practical men. I appeal to the farmer of the country, whether lie does not purchase on better terms his iron, salt, brown sugar, cotton goods, and woollens, for his laboring people And I ask the cotton-planter if he has not been better and more cheaply supplied with his collon- bagging In regard to this latter article, the gentlemaui from South Carolina was mistaken, in supposing that I complained that, under the existing duty, the Kentucky manufacturer could not compete wvith the Scoteh. The Kentuckian furnishes a more substantial and a cheaper article, and at a more uniform and regular price. But it was the frauds, the violations of law, of which I did complain; not smuggling, in the common sense of that practice, which has something bold, daring, and enterprising in it, but mean, barefaced cheating, by fraudulent invoices and false denominations. I plant myself upon this fact, of cheapness and superiority, as upon impregnable ground. Gentlemen may tax their ingenuity, and produce a thousand speculative solutions of the fact, but the fact itself will remain undisturbed. Let us look into some partic- ulars. The total consumption of bar-iron in the United States is supposed to be about one hundred and forty-six thouusanll tons, of which one hundred and twelve thousand eight hundred and sixty- six toils are made within the country, and the residue imported3. The number of men employed in the manufacture is estimated at twenty-nine thousand two hundred and fifty-four, and the total number of persons subsisted by it, at one hundred and forly-six thousand two hundred and seventy-three. The measure of protec- tion exten(led to this necessary article, was iever fully adequate until the passage of the act of 1828; and what has been the conse- quence The annual increase of quantity, since that period, has been in a ratio of near twvcnty-five per centum, and the wholesale price of bar-iron in the northern cities was, in 1828, one hundred and five dollars per ton; in 1829, one hundred dollars; in 1830, ninety dollars; and in 1831, from eighty-five to seventy-five dollars -constantly diminishing. We import very little English iron, and that wvhich wve do is very inferior, and only adapted lo a few purposes. In instituting a comparison between that inferior article and our superior iron, subjects entirely different are compared. They are made by different processes. Tile English cannot make iron of equal quality to ours, at a less price than we do. They 32S IN DEFENCE OF THE A MfrERICAN SYSTEMi. LJ) have three classes, best-best, and best, and ordinary. It is the latter wvhicth is imported. Of the whole amount impiorted, there is nilly about four thousand tons of foreign iron that pays the high duty. the residue paying only a duty of about thirty per centlum, estimated on the prices of the importation of 1829. Our iron ore is superior to that of Great Britain, yielding often from sixty to eighty per cenlum, wvhile theirs produces only about twenty-five. This fact is so wvell known, that I have heard of recent exportations of iron ore to Eiingland. It has been alleged, that bar iron, being a raw material, ought to be admitted free, or with lowv duties, for the sake of the manufac- turers themselves. But I talke this to be the true principle, that if our country is producing a raw material of prime necessity, and with reasonable protectiou, can produce it in sufficient quantity to supply our wants, that raw material ought lo be protected, although it mnay be proper to protect the article also out of which it is manufactured. The tailor will ask protection for himsell, but wishes it deijied lo the grower of wool and the manufac- turer of broadcloth. The cotton planter enjoys protection for the raw material, but does not desire it to be extended to the cotton manufacturer. The ship builder wvill ask protection for navigation, but does not wish it extended to the essential articles which enter into the construction of his ship. Each in his proper vocation solicits protection, but wvould have it denied to all other interests which are supposed to come into collision with his. Now the duty of the statesman is, to elevate himself above these petty conflicts; calmly to survey all the various interests, andl deliberately to proportion the measures of protectiion to each, according to its nature and to the general wants of society. It is quite possible that, in the degree of protection which has been afforded to the various workers in iron, there may be some error comnmitte(l, although I have lately read an arguiment of much ability, proving that no injustice has really been done to themn. if there be, it ought to be remnedied. The lnext article to which I would call the attention of the senate, is that of cotton fabrics. The suiecess of our manufacture of coarse cottons is generally admitted. It is demonstrated by the fact that lhey meet the cottOn fabrics of other countries in foreign markiets, and maintain a successful competition with thein. There has been a gradual increase of the exports of this article, which is sent to Mexico and the South American repub- lies, to the Mediterranean, and even to Asia. The remnarlkable fact wvas lately communicated to me, that the same individual, who twenty-five years ago was engaged in the importation of cotton cloth from Asia for American consumption, is now engaged in the exportation of coarse American cottons lo Asia, for Asiatic consumption! And my honorable friend from Massachusetts, now VOL. 11. 5 SP EECHES OF 1tEN1RY CLAY in my eye, (Mr. Silsbee,) informed me, that on his departure from home, among the last orders which he gave, one was for the exportation of coarse cottons to Sumatra, in the vicinity of Calcutta! I hold in my hand a statement, derived frorm the most authentic source, showing that the identical description of cotton cloth, which sold in 1817 at twenty-nine cents per yard, was sold in 1819 at twenty-one cents, in 1821 at nineteen and a half cents, in 1823 at seventeen cents, in 1825 at fourteen and a half cents, in 1827 at thirteen cents, in 1829 at nine cents, in 1S30 at nine and a half cents, and in 1831 al from ten and a half to eleven. Such is the wonderful effect of protection, competition, and improvement in skill, combined! The year 1829 was one of some suffering to this branch of industry, probably owing to the principle of competition being pushed too far. Hence we observe a small rise in the article of the next two years. The introduction of calico printing into the United States, constitutes an important era in our manufacturing industry. It commenced about the year 1825, and has since made such astonishing advances, that the whole quantity now annually printed is but little short of forty millions of yards-about two thirds of our whole consumption. It is a beautiful manufacture, combining great mechanical skill with scientific discoveries in chemistry. The engraved cylinders for malting the impression require much taste, and put in requisition the genius of the fine arts of design and engraving. Are the fine graceful forms of our fair countrywomen less lovely when enveloped in the chintzes and calicoes produced by native industry, than when clothed in the tinsel of foreign drapery Gentlemen arc no doubt surprised at these facts. They should not underrate the energies, the enterprise, and the skill of our fellow- citizens. I have no doubt they are every way competent to accom- plish whatever can be effected by any other people, if encouraged and protected by the fostering care of our own government. Will gentlemen believe the fact, which I am authorized now to state, that the United States, at this time, manufacture one half the quantity of cotton which Great Britain did in 1S16! We possess three great advantages; first, the raw material; second, water-power instead of that of steam, generally used in England; and, third, the cheaper labor of females. In England, males spin with the mule and weave; in this country, women and girls spin with the throstle, and superintend the power-loom. And can there be any employment more appropriate Who has not been delighted with contemplating the clock-work regularity of a large cotton manu- factory I have often visited them at Cincinnati and other places, and always with increased admiration. The women, separated from the other sex, work in apartments, large, airy, well warmed, and spacious. Neatly dressed, with ruddy complexions, and happy countenances, they watch the work before them, mend the broken IN DEFENCE OF THE AMERICAN SYSTEMt. threads, and replace the exhausted balls or broaches. At stated hours they are called to their meals, and go and return with light and cheerful step. At night they separate, and repair to their respective houses, under the care of a mother, guardian, or friend. ' Six days shalt thou labor and do all that thou hast to do, but the seventh day is the sabbath of the Lord thy God.' Accordingly, we behold them, on that sacred day, assembled together in His temples, an(l in devotional attitudes and with pious countenances otlering their prayers to heaven for all its blessings; of which it is not the least, that a system of policy has been adopted by their country, which admits of their obtaining a comfortable subsistence. Manuflactures have brought into profitable employment a vast amount of female labor, which, without them, would be lost to the country. In respect to woollens, every gentleman's own observation and experience will enable him to judge of the great reduction of price which has taken place in most of these articles, since the tariff of 1824. It would have been still greater, but for the high dlutv on the raw material, imposed for the particular benefit of the farming interest. But, without going into particular details, I shall limit myself to inviting the attention of the senate to a single article of general and necessary use. The protection given to flannels in 1828 was fully adequate. It has enabled the American manufac- turer to obtain complete possession of the American market; and now, let us look at the effect. I have before me a statement from a highly respectable mercantile house, showing the price of four descriptions of flannel during six years. The average price of them, in 1826, was thirty-eight cents and three quarters; in 1827, thirty-eight; in 1828, (the year of the tariff.) forty-six; in 1829, thirty-six; in 1830, (notwithstanding the advance in the price of wool,) thirty-two; and in 1S31, thirty-two and one quarter. These facts require no comments. I have before me another statement of a practical and respectable man, well versed in the flannel manu- facture in America and England, demonstrating that the cost of manufacture is precisely the samne in both countries; and that, although a yard of flannel which would sell in England at fifteen cents, would command here twenty-two, the difference of seven cents is the exact difference between the cost in the two countries, of the six ounces of wool contained in a yard of flannel. Brown sugar, during ten years, from 1792 to 1802, with a duty of one and a half cents per pound, averaged fourteen cents per pound. The same article, during ten years, frorn 1820 to 1830, with a duty of three cents, has averaged only eight cents per pound. Nails, with a duty of five cents per pound, are selling at six cents. Window glas, eight by ten, prior to the tariff of 1824, sold at twelve or thirteen dollars per liundred feet; it noow sells for three dollars seventy-five cents. 3 SPEECHES OF HENRY CLAY. The gentleman from South Carolina, sensible of the incontest- able fact of the very great reduction in the price of the necessaries .1 life, protected by the American system, has felt the full force of it, and has presented various explanations of the causes to wvhici he ascribes it. The first is, the diminished production of the )recious metals, in consequence of the distressed state of the coun- tries in which they are extracted, and the consequent increase of their value, relative lo that of the commodities for which they arc exchanged. But, if this be the true cause of the reduction of price, its operation ought to have been general, on all objects, and of course upon cotton among the rest. And, in point of fact, the dliminished price of that staple is not greater than the diminution of the value of other staples of our agriculture. Flour, which commanded soine years ago, ten or twelve dollars per barrel, is nowv sOld for five. The fall of tobacco has been still more. The kite- foot of IMaryland, wvhich sold at from sixteen to twenty dollars per hundred, now produces only four or five. That of Virginia has sustained an equal decline. Beef, pork, every article almost, produced by the farmer, has decreased in value. Ought not South Carolina, then, to submit quietly to a state of things which is general, and proceeds from an uncontrollable cause Ought she to ascribe to the ' accursed' tariff, what results from the calamities of civil and foreign war, raging in many countries But, sir, I do not subscribe to this doctrine, implicitly. I do not believe that the diminished production of the precious metals, if that be the fact, satisfactorily accounts for the fall in prices; for I think that the augmentation of the currency of the world, by means of banks, public stocks, and other facilities arising out of exchange and credit, has more than supplied any deficiency in the amount of the precious metals. It is further urged, that the restoration of peace in Europe. after the battle of YWaterloo, and the consequent return to peaceful pursuits of large masses of its population, by greatly increasing the aggregate amount of effective labor, had a tendency lo lower prices; and undoubtedly such ought to have been its natural tendency. The same cause. however, must also have operated to reduce the price of our agricultural produce, for which there was no longer the same demand in peace as in war; and it did so operate. But its influence on the price of manufactured articles, between the general peace of Europe in 1S15, and the adoption of our tariff in 1824, was less sensibly felt, because, perhaps, a mntch larger portion of the labor, liberated by the disbandment of armies, was absorbed by manufactures than by agriculture. It is also contended, that the invention and improvement of labor-saving mwmchinery, have tenthe-, to lessen the prices of manufactured objects of consumption; and undoubtedly this cause has had some effect. Ought not America to contribute her quota of this cause, and has 3B' IN DEFENCE OF THE AMERICAN SYSTE. r 7. she not by her skill and extraordinary adaptation to the arts, in truth, largely contributed to it Thjis brings me to consider what I apprehend to have been the nmost efficient of' all the causes in the reduction of the prices of manufactured articles, and that is COMPETITIrON. By competition. the total amount of the supply is increased, and by increase of the supply, a competition in the sale ensues, and this enables the conmtainer to buv at lower rates. Of all human powers operating on the afliiirs of mankind, none is greater than that of competition. It is action and reaction. It operates between individuals in the same nation, and between diflfrent nations. It. resembles limo meeting of the mountain torrent, grooving, by its precipitous motion, its own channel, and ocean's tide. Unopposed, it sweeps every thing before it; but, counterpoised, the waters become calm, safe, and regular. It is like the segments of a circle or an arch; taken separately, each is nothing; but in their combination they produlce efficiency, symmetry, and perfection. By the American system this vast power has been excited in America, and brought inito being to act in cocperation or collision with Eucopean indus- try. Europe acts within itself, and with America; and America acts within itself, and Zewith Europe. The consequence is the reduction of prices in both hemispheres. Nor is it fair to argue from the reduction of prices in Europe, to her own presumed skill and labor exclusively. We aflect her prices, and she affects ours. This must always be the case, at least in reference to any articles as to which there is not a total non-intercourse; and if our industry, by diminishiwg the demand for her supplies, should produce a diminudion in the price of those supplies, it would be very unfair to ascribe that reduction to her ingenuity, instead of placing it to the credit of our own skill and excited industry. Practical men understand very well this state of the case, whether they do or do not comprehend the causes which produce it. I have in my possession a letter from a respectable merchant, wvell lKnowvn to me, in which he says, after complaining of the operation of the tariff of 1828, on the articles to which it applies, some of which he had imported, and that his purchases having been made iil England, before the passage of that tariff was known, it produced such an effect upon the English market, that the articles could not be resold without loss, he adds: 'for it really appears that, vwhen additional duties are laid upon an article, it then becomes loter instead of higher.' This would not probably happen, where the supply of the foreign article did not exceed the home demand, unless upon the supposition of the increased duty having excited or stimulated the measure of the home production. The great law of price is determined by supply and demand. Whatever affects either, affects the price. If the supply is increased, the demand remaining the same, the price declines; if the demand 37 3 SPEECHES OF HENRY CLAY. is increased, the supply remaining the same, the price advances; if both supply and demand are undiminished, the price is stationary, and the price is influenced exactly iti proportion to the degree of disturbance lo the demand or supply. It is, therefore, a great error to suppose that an existing or new duty necessarily becomes a component element to its exact amount of price. If the propor- tions of demand and supply are varied by the duty, either ill augmenting the supply, or diminishing the df mand, or vice versa, price is aflicted to the extent of that variation. But the duty never becomes an integral part of the price, except in the instances where the demand and the supply remain after the duly is imposed, precisely what they were before, or the demand is increased, and the supply remains stationary. Competition, therefore, wherever existing, whether at home or abroad, is the parent cause of cheapness. If a high duty excites production at home, and the quantity of the domestic article exceeds the amount which had been previously imported, the price will fall. This accounts for an extraordinary fact stated by a senator from Missouri. Three cents were laid as a duty upon a pound of lead, by the act of 1828. The price at Galena, and the other lead mines, afterwards fell to one and a half cents per pound. Noxv it is obvious that the duty did not, in this case, enter into the price: for it was twvice the amount of the price. What produced the fall It was stimulated production at home, excited by the temptation of the exclusive possession of the home market. This state of things could not last. Men would not continue an unprofitable pursuit; some abandoned the business, or the total quantity produced was diminished, and living prices have been the consequence. But break down the domestic supply, place us again in a state of dependence on the foreign source, and can it be doubted that we should ultimately have to supply ourselves at dearer rates It is not fair to credit the foreign market with the depression of prices produced there by the influence of our competition. Let the competition be withdrawn, and their prices would instantly rise. On this subject, great mistakes are committed. I have seen most erroneous reasoning in a late report of Mr. Lee, of the free-trade convention in regard to the article of sugar. He calculates the total amount of brown sugar produced in the world, and then states, that what is made in Louisiana is not more than two and a half per centum of that total. Although his data may be questioned, let us assume their truth, and what might be the result Price being determined by the proportions of supply and demrand, it is evident that when the supply exceeds the demand, the price will fall. And the fall is not always regulated by the amount of that excess. If the market at a given price, required five or fifty millions of hogsheads of sugar, a surplus of only a few hundred might materially influence the price, and diffuse itself throughout 38 IN DEFENCE OF THE AMERICAN STSTEM. or 9 the whole mass. Add, therefore, the eighty or one hundred thousand hogsheads of Louisiana sugar to the entire mass pro- duced in other parts of the world, and it cannot be doubted that a material reduction of the price of the article, throughout Europe and America, would take place. The Louisiana sugar substitut- ing foreign sugar in the horne market, to the amount of its annual produce, would force an equal amount of foreign sugar into other markets, which being glutted, the price would necessarily decline, and this decline of price wvould press portions of the foreign sugar into competition in the United States with Louisiana sugar, the price of which would also be brought down. The fact has been in exact conformity with this theory. But nowv let us suppose the Louisiana sugar to be entirely withdrawvn from the general consumption, what then would happen A new demand would be created in America for foreign sugar, to the extent of the eighty or one hundred thousand hogsheads made in Louisiana; a less amount by that quantity, would be sent to the European markets, and the price would consequently every where rise. It is not, therefore, those who, by keeping on duties, keep down prices, that tax the people, but those who, by repealing duties, would raise prices, that really impose burdens upon the people. But it is argued, that if, by the skill, experience, and perfection, which we have acquired in certain branches of manufacture, they can be made as cheap as similar articles abroad, and enter fairly into competition witlh them, why not repeal the duties as to those articles And why should we Assuming the truth of the supposition, the foreign article would not be introduced in the regular course of trade, but would remain excluded by the posses- sion of the home market, which the domestic article had obtained. The repeal, therefore, would haVc no legitimate efect. But might not the foreign article be imported in vast quantifies, to glut our markets, break down our establishments, and ultimately to enable the foreigner to monopolize the supply of our consumption America is the greatest foreign market for European manufactures. It is that to wvhich European attention is constantly directed. If a great house becomes bankrupt there, its store-houses are emptied, and the goods are shipped to America, where, in consequence of our auctions, and our custom-house credits, the greatest facilities arc afforded in the sale of them. Combinations among manufac- turers might take place, or even the operations of foreign govern- inents might be directed to the destruction of our establishments. A repeal, therefore, of one protecting duty, from some one or all of these causes, would be followed by flooding the country with the foreign fabric, surcharging the market, reducing the price, anrd a complete prostration of our manufactories; after which the foreigner would leisurely look about to indemnify himself in the increased prices which he would be enabled to command by his 39 4 SPEECHES OF HENRY CLAY. monopoly of the supply of our consumption. What American cidizen, after the government had displayed this vascillating policy, would be again tempted to place the smallest confidence in the ulblic faith, and adventure once more in this branch of industry Geadtlemen have allowed to the manufacturing portions of the community no l)eace; they have been constantly threatened with The overthrow of the American system. From the year 1820, if not from 1816, dowvn to this time, they have been held in a condition of constant alarm and insecurity. Nothing is more prejudicial to the great interests of a nation than unsettled and varying policy. Although every appeal to the national legislature has been responded to in conformity with the wishes and sentiments of the great majority of the people, measures of protection have only been carried by such small majorities as to excite hopes on the one hand, and fears on the other. Let the country breathe, let its vast resources be developed, let its energies be fully put forth, let it have tranquillity, and my word for it, the degree of perfection in the arts which it will exhibit, will be greater than that which has been presented, astonishing as our progress has been. Although some branches of our manufactures might, and in foreign mnarkets now do, fearlessly contend with similar foreign fabrics, there are many others yet in their infancy, struggling with the difficulties which encompass them. We should look at the whole system, and recollect that time, when we contemplate the great movements of a nation, is very (liflerent from the short period which is allotted for the duration of individual life. The honorable gentleman from South Carolina xwell and eloquently said, in 1824, ' no great interest of any country ever yet grew up in a day; no new branch of industry can become firmly and profitably established but in a long course of ycars ; every thing, indeed, great or good, is matured by slow degrees: that which attains a speedy maturity is of small value, and is destined to a brief existence. It is the order of Providence, that powers gradually developed, shall alone attain permanency and perfection. Thus must it be with our national institutions, and national character itself.' I feel most sensibly, ir. President, how much I have trespassed upon the senate. My apology is a deep and deliberate conviction, that the great cause under debate involves the prosperity and the destiny of the union. But the best requital I can make, for the friendly indulgence which has been extended to me by the senate, and for which I shall ever retain sentiments of lasting gratitude, is to proceed with as little delay as practicable, to the conclusion of a discourse which has not been more tedious to the senate than exhausting to me. I have now to consider the remaining of the two propositions which I have already announced. That is, Second, that under the operation of the American system, the Frodacts of our agriculture command a higher price than they 40 IN DEFENCE OF THE AMERICAN SYSTEMAT. would do without it, by the creation of a home market; and by the augmentation of wealth produced by manufacturing industry, which enlarges our powers of consumption both of domestic and foreign articles. The importance of the home marketis among the established maxims which are universally recognised by all writers and all men. However some may differ as to the relative advan- tages of the foreign and the home market, none deny to the latter great value and high consideration. It is nearer to us; beyond the control of foreign legislation; and undisturbed by those vicissitudes to which all international intercourse is more or less exposed. The most stupid are sensible of the benefit of a residence in the vicinity of a large manufactory, or of a market town, of a good road, or of a navigable stream, which connects their farms with some great capital. If the pursuits of all men were perfectly the same, although they would be in possession of the greatest abundance of the particular produce of their industry, they might, at the same time, be in extreme want of other necessary articles of human subsist- ence. The uniformity of the general occupation would preclude all exchanges, all commerce. It is only in the diversity of the vocations of the members of a community that the means can be found for those salutary exchanges which conduce to the general prosperity. And the greater that diversity, the more extensive and the more animating is the circle of exchange. Even if foreign markets were freely and widely open to the reception of our agri- cultural produce, from its bulky nature, and the distance of the interior, and the dangers of the ocean, large portions of it could never profitably reach the foreign market. But let us quit this field of theory, clear as it is, and look at the practical operation of the system of protection, beginning with the most valuable staple of our agriculture. In considering this staple, the first circumstance that excites our surprise, is the rapidity with which the amount of it has annually increased. Does not this fact, however, demonstrate that the cultivation of it could not have been so very unprofitable If the business were ruinous, would more and more have annually engaged in it The quantity in 1816, was eighty-one millions of pounds; in 1826, two hundred and four millions; and in 1830, near three hundred millions! The ground of greatest surprise is, that it has been able to sustain even its present price with such an enormous augmentation of quantity. It could not have been done but for the combined operation of three causes, by which the consumption of cotton fabrics has been greatly extended, in consequence of their reduced prices: first, competition; second, the improvement of labor-saving machinery; and, thirdly, the low price of the raw material. The crop of 1819, amounting to eighty- eight millions of pounds, produced twenty-one millions of dollars; the crop of 1823, when the amount was swelled to one hundred VOL,. II. 6 41 4 SPEECHES OF HENRY CLAY. and seventy-four millions, (almost double that of 1819,) produced a less sum by more than half a million of dollars; and the crop of 1824, amounting to thirty millions of pounds less than that of the preceding year, produced a million and a half of dollars more. If there be any foundation for the established law of price, supply, and demand, ought not the fact of this great increase of the supply to account satisfactorily for the alleged low price of cotton Is it necessary to look beyond that single fact to the tariff, to the diminished price of the mines furnishing the precious metals, or to any other cause, for the solution This subject is well understood in the south, and although I cannot approve the practice which has been introduced of quoting authority, and still less the authority of newspapers, for favorite theories, I must ask permission of the senate to read an article from a southern newspaper. [Here general Hayne requested Mr. Clay to give the name of the authority, that it might appear whether it was not some other than a southern paper expressing southern sentiments. Mr Clay stated that it was from the Charleston City Gazette, one, he believed, of the oldest and most respectable prints in that city, although he was not sure what might be its sentiments on the question which at present divides the people of South Carolina. The article comprises a full explanation of the low price of cotton, and assigns to it its true cause-increased production.] Let us suppose that the home demand for cotton, which has been created by the American system, were to cease, and that the two hundred thousand bales, which the home market now absorbs, were now thrown into the glutted markets of foreign countries; would not the effect inevitably be to produce a further and great reduction in the price of the article If there be any truth in the facts and principles which I have before stated and endeavored to illustrate, it cannot be doubted that the existence of American manufactures has tended to increase the demand, and extend the consumption of the raw material; and that, but for this increased demand, the price of the article would have fallen, possibly one half lower than it now is. The error of the opposite argument is, in assuming one thing, which being denied, the whole fails; that is, it assumes that the whole labor of the United States would be Mr. Clay stated that he assumed the quantity whien was generally computed, but he believed it much greater, and subsequent information justifies his belief. It appears from the report of the cotton committee appointed by the New York conven- tion, that partial returns show a consumption of upwards of two hundred and fifty thousand bales; that the cotton manufacture employs nearly forty thousand females, and about five thousand children; that the total dependants on it are one hundred and thirty-one thousand four hundred and eighty-nine; that the annual wages paid are twelve million one hundred and fifty-five thousand seven hundred and twenty-three dollars; the annual value of its products thirty-two million three hundred and six thousand and seventy-six dollars; the capital forty-four million nine hundred and fourteen thousand nine hundred and eighty-four dollars; the number of mills seven hundred and ninety-five; of spindles,one million two hundred and forty-six thousand five hundred and three; and of cloth made, two hundred and sixty million four hundred and sixty-one thousand nine hundred and ninety yards. This statement does not comprehend the western manufactures. 42 IN DEFENCE OF THE AMERICAN SYSTEM. 43 profitably employed without manufactures. Now, the truth is, that the system excites and creates labor, and this labor creates wealth, and this new wealth communicates additional ability to consume, which acts on all the objects contributing to human comfort and enjoyment. The amount of cotton imported into the two ports of Boston and Providence alone during the last year, (and it was imported exclusively for the home manufacture,) was one hundred and nine thousand five hundred and seventeen bales. On passing from that article to others of our agricultural produc- tions, we shall find not less gratifying facts. The total quantity of flour imported into Boston, during the same year, was two hundred and eighty-four thousand five hundred and four barrels, and three thousand nine hundred and fifty-five half barrels; of which, there were from Virginia, Georgetown, and Alexandria, one hundred and fourteen thousand two hundred and twenty-two barrels; of Indian corn, six hundred and eighty-one thousand one hundred and thirty- one bushels; of oats, two hundred and thirty-nine thousand eight hundred and nine bushels; of rye, about fifty thousand bushels; and of shorts, thirty-three thousand four hundred and eighty-nine bushels; into the port of Providence, seventy-one thousand three hundred and sixty-nine barrels of flour; two hundred and sixteen thousand six hundred and sixty-two bushels of Indian corn, and seven thousand seven hundred and seventy-two bushels of rye. And there were discharged at the port of Philadelphia, four hundred and twenty thousand three hundred and fifty-three bushels of Indian corn; two hundred and one thousand eight hundred and seventy- eight bushels of wheat, and one hundred and ten thousand five hundred and fifty-seven bushels of rye and barley. There were slaughtered in Boston during the same year, 1831, (the only northern city from which I have obtained returns,) thirty-three thousand nine hundred and twenty-two beef cattle; fifteen thousand and four hundred calves; eighty-four thousand four hundred and fifty-three sheep, and twenty-six thousand eight hundred and seventy-one swine. It is confidently believed, that there is not a less quantity of southern flour consumed at the north than eight hundred thousand barrels, a greater amount, probably, than is shipped to all the foreign markets of the world together. What would be the condition of the farming country of the United States -of all that portion which lies north, east, and west of James river, including a large part of North Carolina - if a home market did not exist for this immense amount of agricultural produce Without that market, where could it be sold In foreign markets If their restrictive laws did not exist, their capacity would not enable them to purchase and consume this vast addition to their present supplies, which must be thrown in, or thrown away, but for the home market. But their laws exclude us from their markets. I shall content myself by calling the attention 43 4 SPEECHES OF HENRY CLAY. of the senate to Great Britain only. The duties in the ports of the united kingdom on bread-stuffs are prohibitory, except in times of dearth. On rice, the duty is fifteen shillings sterling per hundred weight, being more than one hundred per centum. On manufac- tured tobacco it is nine shillings sterling per pound, or about two thousand per centum. On leaf tobacco three shillings per pound, or one thousand two hundred per centum. On lumber, and some other articles, tliey are from four hundred to fifteen hundred per centum more than on similar articles imported from British colonies. In the Brifish West Indies the duty on beef, pork, hams, and bacon, is twelve shillings sterling per hundred, more than one hundred per centum on the first cost of beef and pork in the western states. And yet Great Britain is the power in whose behalf we are called upon to legislate, so that we may enable her to purchase our cotton ! - Great Britain, that thinks only of herself in her own legislation! When have we experienced justice, much less favor, at her hands When did she shape her legislation in reference to the interests of any foreign power She is a great, opulent, and powerful nation; but haughty, arrogant, and supercilious; not more separated from the rest of the world by the sea that girts her island, ihan she is separated in feeling, sympathy, or friendly consideration of their welfare. Gentlemen, in supposing it impracticable that we should successfully compete with her in manufactures, do injustice to the skill and enterprise of their own country. Gallant as Great Britain undoubtedly is, we have gloriously contended with her, man to man, gun to gun, ship to ship, fleet to fleet, and army to army. And I have no doubt we are destined to achieve equal success in the more useful, if not nobler contest for superiority in the arts of civil life. I could extend and dwell on the long list of articles - the hemp, iron, lead, coal, and other items - for which a demand is created in the home market by the operation of the American system; but I should exhaust the patience of the senate. Where, where should we find a market for all these articles, if it did not exist at home What would be the condition of the largest portion of our people, and of the territory, if this home market were annihi- lated How could they be supplied with objects of prime necessity What would not be the certain and inevitable decline in the price of all these articles, but for the home market And allow me, Mr. President, to say, that of all the agricultural parts of the United States which are benefited by the operation of this system, none are equally so with those which border the Chesapeake bay, the lower parts of North Carolina, Virginia, and the two shores of Maryland. Their facilities of transportation, and proximity to the north, give them decided advantages. But if all this reasoning were totally fallacious; if the price of manufactured articles were really higher, under the American 44 IN DEFENCE OF T HE AMERICAN SYSTEM. system, than without it; I should still argue that high or low prices were themselves relative -relative to the ability to pay them. It is in vain to tempt, to tantalize us with the lower prices of European fabrics than our own, if we have nothing wherewith to purchase them. If, by the home exchanges, we can be supplied with neces- sary, even if they are dearer and worse articles of American production than the foreign, it is better than not to be supplied at all. And how would the large portion of our country, which I have described, be supplied, but for the home exchanges A poor neople, destitute of wealth or of exchangeable commodities, has ,iothing to purchase foreign fabrics with. To them they are equally beyond their reach, whether their cost be a dollar or a guinea. It is in this view of the matter that Great Britain, by her vast wealth, her excited and protected industry, is enabled to bear a burden of taxation, which, when compared to that of other nations, appears enormous; but which, when her immense riches are compared to theirs, is light and trivial. The gentleman from South Carolina has drawn a lively and flattering picture of our coasts, bays, rivers, and harbors; and he argues that these proclaimed the design of Providence, that we should be a commercial people. I agree with him. We differ only as to the means. He would cherish the foreign, and neglect the internal trade. I would foster both. What is navigation without ships, or ships without cargoes By penetrating the bosoms of our mountains, and extracting from them their precious treasures; by cultivating the earth, and securing a home market for its rich and abundant products; by employing the water power with which we are blessed; by stimulating and protecting our native industry, in all its forms; we shall but nourish and promote the prosperity of commerce, foreign and domestic. I have hitherto considered the question, in reference only to a state of peace; but a season of war ought not to be entirely over- looked. We have enjoyed near twenty years of peace; but who can tell when the storm of war shall again break forth Have we forgotten, so soon, the privations to which not merely our brave soldiers and our gallant tars were subjected, but the whole com- munity, during the last war, for the want of absolute necessaries To what an enormous price they rose! And how inadequate the supply was, at any price! The statesman who justly elevates his views, will look behind as well as forward, and at the existing state of things; and he will graduate the policy, which he recom- mends, to all the probable exigences which may arise in the republic. Taking this comprehensive range, it would be easy to show that the higher prices of peace, if prices were higher in peace, were more than compensated by the lower prices of war, during which, supplies of all essential articles are indispensable to its vigorous, effectual, and glorious prosecution. I conclude this part of the argument with the hope that my humble exertions have not been altogether unsuccessful in showing, 45 SPEECHES OF HENRY CLAY. First, that the policy which we have been considering ought to continue to be regarded as the genuine American system. Secondly, that the free trade system, which is proposed as its substitute, ought really to be considered as the British colonial system. Thirdly, that the American system is beneficial to all parts of the union, and absolutely necessary to much the larger portion. Fourthly, that the price of the great staple of cotton, and of all our chief productions of agriculture, has been sustained and upheld, and a decline averted, by the protective system. Fifthly, that if the foreign demand for cotton has been at all diminished, by the operation of that system, the diminution has been more than compensated, in the additional demand created at home. Sixthly, that the constant tendency of the system, by creating competition among ourselves, and between American and Euro- pean industry, reciprocally acting upon each other, is to reduce prices of manufactured objects. Seventhly, that, in point of fact, objects within the scope of the policy of protection, have greatly fallen in price. Eighthly, that if, in a season of peace, these benefits are experi- enced, in a season of war, when the foreign supply might be cut off, they would be much more extensively felt. Ninthly, and finally, that the substitution of the British colonial system for the American system, without benefiting any section of the union, by subjecting us to a foreign legislation, regulated by foreign interests, would lead to the prostration of our manufacto- ties, general impoverishment, and ultimate ruin. And now, Mr. President, I have to make a few observations on E delicate subject, which I approach with all the respect that is due to its serious and grave nature. They have not, indeed, been rendered necessary by the speech from the gentleman from South Carolina, whose forbearance to notice the topic was commendable, as his argument throughout was characterized by an ability and dignity worthy of him, and of the senate. The gentleman made one declaration, which might possibly be misinterpreted, and I submit to him whether an explanation of it be not proper. The declaration, as reported in his printed speech, is, 'the instinct of self-interest might have taught us an easier way of relieving our- selves from this oppression. It wanted but the will to have supplied ourselves with every article embraced in the protective system, free of duty, without any other participation on our part than a simple consent to receive them.' Here general Hayne rose and remarked, that the passages which immediately pre- ce ed and followed the paragraph cited, he thought plainly indicated his meaning, which related to evasions of the system. by illicit introduction of goods, which they were not disposed to countenance in South Carolina.] 46 IN DEFENCE OF THE AMERICAN SYSTEM. 47 I am happy to hear this explanation. But, sir, it is impossible to conceal from our view the facts, that there is a great excitement in South Carolina; that the protective system is openly and violently denounced in popular meetings; and that the legislature itself has declared its purpose of resorting to counteracting meas- ures, a suspension of which has only been submitted to, for the purpose of allowing congress time to retrace its steps. With respect to this union, Mr. President, the truth cannot be too gener- ally proclaimed, nor too strongly inculcated, that it is necessary to the wvhole and to all the parts - necessary to those parts, indeed, in different degrees, but vitally necessary to each -and that threats to disturb or dissolve it, coming from any of the parts, would be quite as indiscreet and improper as would be threats from the residue to exclude those parts from the pale of its benefits. The great principle, which lies at the foundation of all free governments, is, that the majority must govern; from which there is or can be no appeal but to the sword. That majority ought to govern wisely, equitably, moderately, and constitutionally, but govern it nust, subject only to that terrible appeal. If ever one or several states, being a minority, can, by menacing a dissolution of the union, succeed in forcing an abandonment of great measures, deemed essential to the interests and prosperity of the whole, the union, from that moment, is practically gone. It may linger on, in form and name, but its vital spirit has fled for ever! Entertain- ing these deliberate opinions, I would entreat the patriotic people of South Carolina -the land of Marion, Sumpter, and Pickens; of Rutledge, Laurens, the Pinkneys and Lowvndes; of living and present names, which I would mention if they were not living or present -to pause, solemnly pause! and contemplate the frightful precipice which lies directly before them. To retreat may be painful and mortifying to their gallantry and pride, but it is to retreat to the union, to safety, and to those brethren with whom, or with whose ancestors, they, or their ancestors, have won, on fields of glory, imperishable renown. To advance, is to rush on certain and inevitable disgrace and destruction. We have been told of deserted castles, of uninhabited halls, and of mansions, once the seats of opulence and hospitality, now abandoned and mouldering in ruins. I never had the honor of being in South Carolina, but I have heard and read of the stories of its chivalry, and of its generous and open-hearted liberality. I have heard, too, of the struggles for power, between the lower and upper country. The same causes which existed in Virginia, with which I have been acquainted, I presume, have had their influence in Carolina. In whose hands now are the once proud seats of Westover Curl, Maycox, Shirley, and others, on James river, and As to Shirley, Mr. Clay acknowledges his mistake, made in the warmth of debate. It is yet the abode of the respectable and hospitable descendants of its former opulent proprietor. 47 4 SPEECHES OF H EENRY CLAY. in lower Virginia Under the operation of laws, abolishing the principle of primogeniture, and providing the equitable rule of an equal distribution of estates, among those in equal degree of con- sanguinity, they have passed into other and stranger hands. Some of the descendants of illustrious families have gone to the far west, while others, lingering behind, have contrasted their present condition with that of their venerated ancestors. They behold themselves excluded from their fathers' houses, now in the hands of those who were once their fathers' overseers, or sinking into decay; their imaginations paint ancient renown, the fading honors of their name -glories gone by; too poor to live, too proud to work, too high-minded and honorable to resort to ignoble means of acquisition; brave, daring, chivalrous; what can be the cause of their present unhappy state The ' accursed' tariff presents itself to their excited imaginations, and they blindly rush into the ranks of those who, unfurling the banner of nullification, would place a state upon its sovereignty! The danger to our union does not lie on the side of persistence in the American system, but on that of its abandonment. If, as I have supposed and believe, the inhabitants of all north and east of James river, and all west of the mountains. including Louisiana, are deeply interested in the preservation of that system, would they be reconciled to its overthrow Can it be expected that two thirds, if not three fourths, of the people of the United States, would consent to the destruction of a policy, believed to be indispensably necessary to their prosperity When, too, the sacrifice is made at the instance of a single interest, which they verily believe will not be promoted by it In estimating the degree of peril which may be incident to two opposite courses of human policy, the statesman would be short-sighted who should content himself with viewing only the evils, real or imaginary, which belong to that course which is in practical operation. He should lift himself up to the contem- plation of those greater and more certain dangers which might inevitably attend the adoption of the alternative course. What would be the condition of this union, if Pennsylvania and New York, those mammoth members of our confederacy, were firmly persuaded that their industry was paralysed, and their prosperity blighted, by the enforcement of the British colonial system, under the delusive name of free trade Thev are now tranquil and happy, and contented, conscious of their welfare, and feeling a salutary and rapid circulation of the products of home manufac- tures and home industry, throughout all their great arteries. But let that be checked, let them feel that a foreign system is to predom- inate, and the sources of their subsistence and comfort dried up; let New England and the west, and the middle states, all feel that they too are the victims of a mistaken policy, and let these vast portions of our country despair of any favorable change, and then 48 IN DEFENCE OF THE AMERICAN SYSTEM. 49 indeed might we tremble for the continuance and safety of this union! And need I remind you, sir, that this dereliction of the duty of protecting our domestic industry, and abandonment of it to the fate of foreign legislation, would be directly at war with leading considerations which prompted the adoption of the present consti- tution The states respectively surrendered to the general govern- ment the whole power of laying imposts on foreign goods. They stripped themselves of all power to protect their own manufac- tures, by the most efficacious means of encouragmentt-the imposition of duties on rival foreign fabrics. Did they create that great trust, did they voluntarily subject themselves to this self- restriction, that the power should remain in the federal government inactive, unexecuted, and lifeless Mr. Madison, at the commence- ment of the government, told you otherwise. In discussing at that early period this very subject, he declared that a failure to exercise this power would be a 'fraud' upon the northern states, to which may now be added the middle and western states. [Governor Miller asked to what expression of Mr. Madison's opinion Mr. Clay referred; and Mr. Clay replied, his opinion, expressed in the house of representatives in 1789, as reported in Lloyd's Congressional Debates.] Gentlemen are greativ deceived as to the hold which this system has in the affections of the people of the United States. They represent that it is the policy of New England, and that she is most benefited by it. If there be any part of this union which has been most steady, most unanimous, and most determined in its support, it is Pennsylvania. Why is not that powerful state attacked Why pass her over, and aim the blow at New Eng- land New England came reluctantly into the policy. In 1824, a majority of her delegation was opposed to it. From the largest state of New England there was but a solitary vote in favor of the bill. That enterprising people can readily accommodate their industry to any policy, provided it be settled. They supposed this was fixed, and they submitted to the decrees of government. And the progress of public opinion has kept pace with the developments of the benefits of the system. Now, all New England, at least in this house, (with the exception of one small still voice,) is in favor of the system. In 1824, all Maryland was against it; now the majority is for it. Then, Louisiana, with one exception, was opposed to it; now, without any exception, she is in favor of it. The march of public sentiment is to the south. Virginia will be the next convert; and in less than seven years, if there be no obstacles from political causes, or prejudices industriously instilled, the majority of eastern Virginia will be, as the majority of western Virginia now is, in favor of the American system. North Carolina VOL. II. 7 0 SPEECHES OF HENRY CLAY. will follow later, but not less certainly. Eastern Tennessee is now in favor of the system. And, finally, its doctrines will pervade the whole union, and the wonder will be, that they ever should have been opposed. I have now to proceed to notice some objections which have been urged against the resolution under consideration. With respect to the amendment which the gentleman from South Carolina has offered, as he has intimated his purpose to modify it, I shall forbear for the present to comment upon it. It is contended that the resolution proposes the repeal of duties on luxuries, leaving those on necessaries to remain, and that it will, therefore, relieve the rich without lessening the burdens of the poor. And the gentleman from South Carolina has carefully selected, for ludicrous effect, a number of the unprotected articles, cosmetics, perfumes, oranges, and so forth. I must say, that this exhibition of the gentleman is not in keeping with the candor which he has generally displayed; that he knows very well that the duties upon these articles are trifling, and that it is of little consequence whether they are repealed or retained. Both systems, the American and the foreign, comprehend some articles which may be deemed luxuries. The senate knows that the unprotected articles which yield the principal part of the revenue, with which this measure would dispense, are coffee, tea, spices, wines, and silks. Of all these articles, xvines and silks alone can be pronounced to be luxuries; and as to wines, we have already ratified a treaty, not yet promulgated, by which the duties on them are to be considerably reduced. If the universality of the use of objects of consumption determines their classification, coffee, tea, and spices, in the present condition of civilized society, may be considered necessaries. Even if they were luxuries, why should not the poor, by cheapening their prices, if that can be effected, be allowed to use them Why should not a poor man be allowed to tie a silk handkerchief on his neck, occasionally regale himself with a glass of cheap French wine, or present his wife or daughter with a silk gown, to be worn on sabbath or gala days I am quite sure that I do not misconstrue the feelings of the gentleman's heart, in supposing that he would be happy to see the poor as well as the rich moderately indulging themselves in those innocent gratifications. For one, I am delighted to see the condition of the poor attracting the considera- tion of the opponents of the tariff. It is for the great body of the people, and especially for the poor, that I have ever supported the American system. It affords them profitable employment, and supplies the means of comfortable subsistence. It secures to them, certainly, necessaries of life, manufactured at home and place, within their reach, and enables them to acquire a reasonable share of foreign luxuries; while the system of gentlemen promises them necessaries made in foreign countries, and which are beyond their so IN DEFENCE OF THE AMERICAN SYSTEM. 51 power, and denies to them luxuries, which they would possess no means to purchase. The constant complaint of South Carolina against the tariff, is, that it checks importations, and disables foreign powers from purchasing the agricultural productions of the United States. The effect of the resolution wvill be to increase importations, not so much, it is true, from Great Britain, as from the other powers, but not the less acceptable on that account. It is a misfortune that so large a portion of our foreign commerce concentrates in one nation; it subjects us too much to the legislation and the policy of that nation, and exposes us to the influence of her numerous agents, factors, and merchants. And it is not amoDi the smallest recom- mendations of the measure before the senate, that its tendency will be to expand our commerce with France, our great revolutionary ally, the land of our Lafayette. There is much greater proba- bility also, of an enlargement of the present demand for cotton in France, than in Great Britain. France engaged later in the manu- facture of cotton, and has made, therefore, less progress. She has, moreover, no colonies producing the article in abundance, whose industry she might be tempted to encourage. The honorable gentleman from Maryland (general Smith), by his reply to a speech which, on the opening of the subject of this resolution, I had occasion -to make, has rendered it necessary that I should take some notice of his observations. The honorable gentleman stated that he had been accused of partiality to the manufacturing interest. Never was there a more groundless and malicious charge preferred against a calumniated man. Since this question has been agitated in the public councils, although I have often heard frorn him professions of attachment to this branch of industry, I have never known any member a more uniform, deter- mined, and uncompromising opponent of themn, than the honorable senator has invariably been. And if, hereafter, the calumny should be repeated, of his friendship to the Amnerican systerm, I shall be ready to furnish to him, in the most solemn manner, my testimony to his innocence. The honorable gentleman supposed that I had advanced the idea that the permanent revenue of this country should be fixed at eighteen millions of dollars. Certainly I had no intention to announce such an opinion, nor do my expressions, fairly interpreted, imply it. I stated, on the occasion referred to, that, estimating the ordinary revenue of the country at twenty-five millions, and the amount of the duties on the unprotected articles proposed to be repealed by the resolution, at seven millions, the latter surn taken from the former would leave eighteen. But I did not intimate any belief that the revenue of the country ought, for the future, to be permanently fixed at that or any other precise sumil. I stated that, after having effected so great a reduction, we might pause, cautiously survey the whole ground, and deliberately deter- 51 5 SPEECHES OF HENRY CLAY. mine upon other measures of reduction, some of which I indicated. And I now say, preserve the protective system in full vigor; give us the proceeds of the public domain for internal improvements, or, if you please, partly for that object, and partly for the removal of the free blacks, with their own consent, from the United States; and for one, I have no objection to the reduction of the public revenue to fifteen, to thirteen, or even to nine millions of dollars. In regard to the scheme of the secretary of the treasury for paying off the whole of the remaining public debt. by the fourth day of March, 1833, including the three per centur, and for that purpose selling the bank stock, I had remarked that, with the exception of the three per centum, there were not more than about four millions of dollars of the debt due and payable within this year, that, to meet this, the secretary had stated in his annual report, that the treasury would have, from the receipts of this year, fourteen millions of dollars, applicable to the principal of the debt; that I did not perceive any urgency for paying off the three per centum by the precise day suggested; and that there was no necessity, according to the plans of the treasury, assuming them to be expedient and proper, to postpone the repeal of the duties on unprotected articles. The gentleman from Maryland imputed to me ignorance of the act of the twenty-fourth of April, 1830, according to which in his opinion the secretary was obliged to purchase the three per centum. On what ground the senator sup- posed I was ignorant of that act he has not stated. Although when it passed I was at Ashland, I assure him that I was not there altogether uninformed of what was passing in the world. I regul- larly received the Register of my excellent friend (Mr. Niles), published in Baltimore, the National Intelligencer, and other papers. There are two errors to which gentlemen are sometimes liable; one is to magnify the amount of knowledge which they possess them- selves, and the second is to depreciate that which others have acquired. And will the gentleman from Maryland excuse me for thinking that no man is more prone to commit both errors than himself'! I will not say that he is ignorant of the true meaning of the act of 1830, but I certainly place a different construction upon it from what he does. It does not oblige the secretary of the treasury, or rather the commissioners of the sinking fund, to apply the surplus of any year to the purchase of the three per centurn stock particularly, but leaves them at liberty 'to apply such surplus to the purchase of any portion of the public debt, at such rates as, in their opinion, may be advantageous to the United States.' This vests a discretionary authority, to be exercised under official responsibility. And if any secretary of the treasury, when he had the option of purchasing a portion of the debt, bearing a higher rate of interest at par or about par, -were to execute the act by purchasing the three per centums at their present price, he would merit 52 53 IN DEFENCE OF THE AMERICAN SYSTEIM. impeachment. Undoubtedly a state of fact may exist, such as there being no public debt remaining to be paid, but the three per centum stock, with a surplus in the treasury, idle and unproductive, in which it might be expedient to apply that surplus to the reimbursement of the three per centums. But whilst the interest of money is at a greater rate than three per centum, it would not, I think, be wise to produce an accumulation of public treasure for such a purpose. The postponement of any reduction of the amount of the revenue, at this session, must, however, give rise to that very accumulation; and it is, therefore, that I cannot perceive the utility of the postponement. We are told by the gentleman from Maryland, that offers have been made to the secretary of the treasury to exchange three per centums, at their market price of ninety-six per centum, for the bank stock of the government at its mark-et price, which is about one hundred and twenty-six, and he thinks it would be wise to accept them. If the charter of the bank is renewed, that stock will be probably worth much more than its present price; if not renewed, much less. Would it be fair in government, while the question is pending and undecided, to make such an exchange The differ- ence in value between a stock bearing three per centum and one bearing seven per centum must be really much greater than the difference between ninety-six and one hundred and twenty-six per centum. Supposing thei to be perpetual annuities, the one would be worth more than twice the value of the other. But my objection to the treasury plan is, that it is not necessary to execute it -lo continue these duties as the secretary proposes. The secretary has a debt of twenty-four millions to pay; he has from the accruing receipts of this year fourteen millions, and we are now told by the senator from Maryland, that this sum of fourteen millions is exclusive of any of the duties accruing this year. He proposes to raise eight millions by sale of the bank stock, and to anticipate from the revenue receivable next vear, two millions more. These three items, then, of fourteen millions, ein1it millions, and two millions, make up the sum required, of twenty-four millions, without the aid of the duties to which the resolution relates. The gentleman froin Maryland insists that the general govern- ment has been liberal towards the west in its appropriations of public lands for internal improvements; and, as to fortifications, he contends that the expenditures near the mouth of the Mississippi are for its especial benefit. The appropriations of land to the states of Ohio, Indiana, Illinois, and Alabama, have been liberal; but it is not to be overlooked, that the general government is itself the greatest proprietor of land, and that a tendency of the improve- ments, which these appropriations were to effect, is to increase the value of the unsold public domain. The erection of the fortifica- tions for the defence of Louisiana, was highly proper; but the 6 SPEECHES OF HIENfRY CLAY. gentleman might as well place to the account of the west, the disbursement for the fortifications intended to defend Baltimore, Philadelphia, and New York, to all which capitals western produce is sent, and in the security of all of which the western people feel a lively interest. They do not object to expenditures for the army, for the navy, for fortifications, or for any other offensive or commercial object on the Atlantic, but they do think that their condition ought also to receive friendly attention from the general government. With respect to the state of Kentucky, not one cent of money, or one acre of land, has been applied to any object of internal improvement within her limits. The subscription to the stock of the canal at Louisville was for an object in which many states were interested. The senator from Maryland complains that he has been unable to obtain any aid for the railroad which the enterprise of Baltimore has projected, and in part executed. That was a great work, the conception of which was bold, and highly honorable, and it deserves national encouragement. But how has the committee of roads and canals, at this session, been constituted The senator from Maryland possessed a brief authority to organize it, and, if I am not misinformed, a majority of the members composing it, appointed by him, are opposed both to the constitu. tionality of the power, and the expediency of exercising it. And now, sir, I would address a few words to the friends of the American system in the senate. The revenue must, ought to be reduced. The country will not, after by the payment of the public debt ten or twelve millions of dollars become unnecessary, bear such an annual surplus. Its distribution would form a subject of perpetual contention. Some of the opponents of the system understand the stratagem bv which to attack it, and are shaping their course accordingly. It is to crush the system by the accumu- lation. of revenue, and by the effort to persuade the people that thev are unnecessarily taxed, while those would really tax them who would break up the native sources of supply, and render them dependent upon the foreign. But the revenue ought to be reduced, so as to accommodate it to the fact of the payment of the public debt. And the alternative is or may be, to preserve the protecting system, and repeal the duties on the unprotected articles, or to preserve the duties on unprotected articles, and endanger if not destroy the system. Let us then adopt the measure before us, which will benefit all classes; the farmer, the professional man, the merchant, the manufacturer, the mechanic; and the cotton planter more than all. A few months ago there was no diversity of opinion as to the expediency of this measure. All, then, seemed to unite in the selection of these objects for a repeal of duties which were not produced within the country. Such a repeal did not touch our domestic industry, violated no principle, offended no prejudice. 54 IN DEFENCE OF THE AMERICAN SYSTEM. 55 Can we not all, whatever may be our favorite theories, cordially unite on this neutral ground When that is occupied, let us look beyond it, and see if any thing can be done in the field of protec- tion, to modify, to improve it, or to satisfy those who are opposed to the system. Our southern brethren believe that it is injurious to them, and ask its repeal. We believe that its abandonment will be prejudicial to them, and ruinous to every other section of the union. However strong their convictions may be, they are not stronger than ours. Between the points of the preservation of the system and its absolute repeal, there is no principle of union. If it can be shown to operate immoderately on any quarter; if the measure of protection to any article can be demonstrated to be undue and inordinate; it would be the duty of congress to interpose and apply a remedy. And none will cooperate more heartily than I shall in the performance of that duty. It is quite probable that beneficial modifications of the system may be made without impairing its efficacy. But to make it fulfil the purposes of its institution, the measure of protection ought to be adequate. If it be not, all interests will be injuriously affected. The manufacturer, crippled in his exertions, will produce less perfect and dearer fabrics, and the consumer will feel the consequence. This is the spirit, and these are the principles only, on which it seems to me that a settlement of the great question can be made, satisfactorily to all parts of our union. ON THE PUBLIC LANDS. IN THE SENATE OF THE UNITED STATES, JUNE 20, 1832. [TnE immense tracts of public lands possessed by the United States, situated in the western states and territories, had been acquired by cessions to the general govern- ment from the original Atlantic states claiming them; by the purchase of Louisiana and Florida; and by treaties of purchase with the Indians. The principal inducement to their cession by the states was to aid in the payment of the revolutionary war debt, for which they were at first pledged. The prospect of the extinguishment of the public debt during general Jackson's administration induced him, while president, to recommend to congress the cession of the lands unsold to the states in which they were situated; which would have been an act of injustice to the original thirteen states, and some of the others. President Jefferson had in 1806 suggested the appro- priation of the proceeds of the sales of the lands to works of internal improvement, and to the support of education. It will be recollected that in 1832. general Jackson was a candidate for reelection as president, and Mtr. Clay had been nominated in opposition. The opponents of Mr. Clay, having a majority in the senate, referred to the committee on manufaciurcs, of which Mr. Clay was chairman, an inquiry respecting the proper disposition of the public lands. This was done for the purpose of embarrassing Mr. Clay, and injuring him either in the old or new states, whichever way he might report on the subject. The result was a severe disappointment to his enemies, by his devising and reporting a plan for the distribution of the proceeds of the sales of the public lands among all the several states; the principles of which report, being founded in wisdom and justice, could not well be resisted, and lhave been repeatedly since adopted by congress, although prevented from being carried into effect by the vetoes of presidents Jackson and Tyler. This report, and the bill which accompanied it, were supported by Mr. Clay in the following speech, giving the most interesting views of a subject of vast importance to his countrymen, and with which his fame as a statesman and public benefactor must ever stand identified.] IN rising to address the senate, I owe, in the first place, the expression of my hearty thanks to the majority, by whose vote, just given, I am indulged in occupying the floor on this most important question. I am happy to see that the days when the sedition acts and gag laws were in force, and when screws were applied for the suppression of the freedom of speech and debate, are not yet to return; and that, when the consideration of a great question has been specially assigned to a particular day, it is not allowed to be arrested and thrust aside by any unexpected and unprecedented parliamentary manceuvre. The decision of the majority demon- strates that feelings of liberality, and courtesy, and kindness, still prevail in the senate; and that they will be extended even to one ON THIE PUBLIC LANDS. of the humblest members of the body; for such, I assure the scna e, I feel myself to be. It may not be amiss again to allude to the extraordinary reference of the subject of the public lands to the committee of' manufac- tures. I have nothing to do with the motives of honorable senators who composed the majority by which that reference was ordered The decorum proper in this hall obliges nme to consider their motives to have been pure and patriotic. But still I must be permitted to regard the proceeding as very unusual. The senale has a standing committee on the public lands, appointed under long established rules. The members of that committee arc presumed to be well acquainted with the subject; they have some of them occupied the same station for many years, are well versed in the whole legislation on the public lands, and familiar with every branch of it; and four out of five of them come from the new states. Yet, with a full knowledge of all these circumstances, a reference was ordered by a majority of the senate to the committve on manufactures- a committee than which there is not another standing committee of the senate, whose prescribed duties are more incongruous with the public domain. It happened, in the consti- tution of the committee of manufactures, that there was not a solitary senator from the new states, and but one from any western state. We earnestly protested against the reference, and insisted upon its impropriety; but we were overruled by the majority, including a majority of senators from the new states. I will not attempt an expression of the feelings excited in my mind on tint occasion. Whatever may have been the intention of honorable senators, I could not be insensible to the embarrassment in wheiCh the committee of manufactures was placed, and especially myself. Although any other member of that committee could have rendered himself, with appropriate researches and proper time, more compe- tent than I was to understand the subject of the public lands, it was known that, from my local position, I alone was sp)pposed to have any particular lknowvledge of themn. Whatever emanated from the committee was liliely, therefore, to be ascribed to me. If ihe committee should propose a measure of great liberality towards the new states, the old states might complain. If the measure should seem to lean towards the old states, the new might be dissaiisfied. And if it inclined to neither class of slates, but recommended a p)lal according to which there would be distributed impartial justice This subject had been set down for this daY. It was generally expected. in and out of the senate, that it would be taken up). and that Mr. Clay woiud address the senate. The members were generally in their seats. anl the g-llerv and lobbies crowded. At the customary hour. he moved that the subiect pending should be laid on the table. to ta'e 1tj, the land bill. It was ordered accordinaly. At this point of time Mr. Forsyth made a motion. supported by Mr. Tazwell, that the senate proceed to executive business. The motion was overruled. VOL. 11. 8 57 5 SPEECHES OF HENRY CLAY. among all the states, it was far from certain that any would be pleased. Without venturing to attribute to honorable senators the purpose of producing this personal embarrassment, I felt it as a necessary consequence of their act, just as much as if it had been in their contemplation. Nevertheless, the committee of manufactures cheerfully entered upon the duty which, against its will, was thus assigned to it by the senate. And, for the causes already noticed, that of preparing a report and suggesting some measure embracing the whole subject. devolved in the committee upon me. TI'he general features of our land system were strongly impressed on my memory; but I found it necessary to reexamine some of the treaties, deeds of cession, and laws, which related to the acquisition and administration of the public lands; and then to think of, and, if possible, strike out some project, which, without inflicting injury upon any of the states, might deal equally and justly with all of them. The report and bill, submitted to the senate, after having been previously sanctioned by a majority of the committee, were the results of this consideration. The report, with the exception of the principle of distribution which concludes it, obtained the unan- imous concurrence of the committee of manufactures. This report and bill were hardly read in the senate before they were violently denounced. And they were not considered by the senate before a proposition was made to refer the report to that very committee of the public lands to which, in the first instance, I contended the subject ought to have been assigned. It was in vain that we remonstrated against such a proceeding, as unprece- dented, as implying unmerited censure on the committee of manufactures, as leading to interminable references; for what more reason could there be to refer the report of the committee of manufactures to the land committee, than would exist for a subsequent reference of the report of this committee, when made, to some third committee, and so on in an endless circle In spite of all our remonstrances, the same majority, with but little if any variation, which had originally resolved to refer the subject to the committee of manufactures, now determined to commit its bill to the land committee. And this not only without particular exami- nation into the merits of that bill, but without the avowal of any specific amendment which was deemed necessary! The committee of public lands, after the lapse of some days, presented a report, and recommended a reduction of the price of the public lands immediately to one dollar per acre, and eventually to fifty cents per acre; and the grant to the new states of fifteen per centum on the net proceeds of the sales, instead of ten, as proposed by the committee of manufactures, and nothing to the old states. And now, Mr. President, I desire, at this time, to make a few ob ervations in illustration of the original report; to supply some 58 ON THE PUBLIC LANDS. omissions in its composition; to say something as to the power and rights of the general government over the public domain; to submit a few remarks on the counter report; and to examine the assumptions which it contained, and the principles on which it is founded. No subject which had presented itself to the present, or perhaps any preceding congress, was of greater magnitude than that of the public lands. There was another, indeed, which possessed a more exciting and absorbing interest; but the excitement was happily but temporary in its nature. Long after we shall cease to be agitated by the tariff, ages after our manufactures shall have acquired a stability and perfection which will enable them success- fully to cope with the manufactures of any other country, the public lands will remain a subject of deep and enduring interest. In whatever view we contemplate them, there is no question of such vast importance. As to their extent, there is public land enough to found an empire; stretching across the immense continent, from the Atlantic to the Pacific ocean, from the Gulf of Mexico to the northwestern lakes, the quantity, according to official surveys and estimates, amounting to the prodigious sum of one billion and eighty millions of acres! As to the duration of the interest regarded as a source of comfort to our people, and of public income - during the last year, when the greatest quantity was sold that ever, in one year, had been previously sold, it amounted to less than three millions of acres, producing three millions and a half of dollars. Assuming that year as affording the standard rate at which the lands will be annually sold, it would require three hundred years to dispose of them. But the sales will probably be accelerated from increased population and other causes. We may safely, however, anticipate that long, if not centuries, after the present day, the representatives of our children's children may be deliberating in the halls of congress, on laws relating to the public lands. The subject in other points of view, challenged the fullest attention of an American statesman. If there were anv one circumstance more than all others which distinguished our happy condition from that of the nations of the old world, it was the possession of this vast national property, and the resources which it afforded to our people and our government. No European nation, (possibly with the exception of Russia,) commanded such an ample resource. With respect to the other republics of this continent, we have no information that any of them have yet adopted a regular system of previous survey and subsequent sale of their wild lands, in convenient tracts, well defined, and adapted to the wants of all. On the contrary, the probability is, that they adhere to the ruinous and mad system of old Spain, according to which large unsurveyed districts are granted to favorite individuals, 6 SPEECHES O.F HENRY CLAY. prejudicial to them, who often sink under the incumbrance, and die in poverty, whilst the regular current of emigration is checked and diverted from its legitimate channels. And if there be in the operations of this government one which more than any other displays consummate wisdom and statesman- ship, it is that system by which the public lands have been so successfully administered. We should pause, solemnly pause, before we subvert it. We should touch it hesitatingly, and with the gentlest hand. The prudent management of the public lands, in the hands of the general government, will be more manifest by contrasting it with that of several of the states, which had the disposal of large bodies of waste lands. Virginia possessed an ample domain west of the mountains, and in the present state of Kentucky, over and above her munificent cession to the general government. Pressed for pecuniary means, by the revolutionary war, she brought her wild lands, during its progress, into market, receiving payment in paper money. There were no previous surveys of the waste lands; no townships, no sections, no official definition or description of tracts. Each purchaser made his own location, describing the land bought as he thought proper. These locations or descriptions were often vague and uncertain. The consequence was, that the same tract was not unfrequently entered at various times by different purchasers, so as to be literally shingled over with conflicting claims. The state perhaps sold in this way much more land than it was entitled to, but then it received nothing in return that was valuable; whilst the purchasers, in consequence of the clashing and interference between their rights, were exposed to tedious, vexatious, and ruinous litigation. Kentucky suffered long and severely from this cause; and is jiust emerging from the troubles brought upon her by improvident land legislation. Western Virginia has also suffered greatly, though not to the same extent. The state of Georgia had large bodies of waste lands, which she disposed of in a manner satisfactory, no doubt, to herself, but astonishing to every one out of that commonwealth. According to her system, waste lands are distributed in lotteries, among the people of the state, in conformity with the enactments of the legis- lature. And wvhen one district of country is disposed of, as there are many who do not draw prizes, the unsuccessful call out for fresh distributions. These are made from time to time, as lands are acquired from the Indians; and hence one of the causes of the avidity with which the Indian lands are sought. It is manifest, that neither the present generation, nor posterity, can derive much advantage from this mode of alienating public lands. On the contrary, I should think, it cannot fail to engender speculation and a spirit of gambling. The state of Kentucky, in virtue of a compact with Virginia, 60 ON THE PUBLIC LANDS. G1 acquired a right to a quantity of public lands south of Green river. Neglecting to profit by the unfortunate example of the parent state, she did not order the country to be surveyed previous to its being offered to purchasers. Seduced by some of those wild land projects, of which at all times there have been some afloat, and which, hitherto, the general government alone has firmly resisted, she was tempted to ofer her waste lands to settlers, at different prices, under the name of head-rights or preemptions. As the laws, like most legislation upon such subjects, were somewhat loosely worded, the keen eye of the speculator soon discerned the defects, and he took advantage of them. Instances had occurred, of masters obtaining certificates of head-rights in the name of their slaves, and thus securing the land, in contravention of the intention of the legislature. Slaves, generally, have but one name, being called Tom, Jack, Dick, or Harry. To conceal the fraud, the owner would add Black, or some other cognomination, so that the certificate would read Tom Black, Jack Black, and so forth. The gentleman from Tennessee, (Mr. Grundy,) wvill remember, some twventy-odd years ago, when we were both members of the Ken- tlucky legislature, that I took occasion to animadvert upon these fraudulent practices, and observed, that when the names came to be alphabeted, the truth would be told, whatever might be the language of the record; for the alphabet would read Black Tom, Black Harry, and so forth. Kentucky realized more in her treasury than the parent state had done, considering that she had but a remnant of public lands, and she added somewhat to her popula- tion. But they were far less available than they would have been under a system of previous survey and regular sale. These observations, in respect to the course of the respectable states referred to, in relation to their public lands, are not prompted by any unkind feelings towards them, but to show the superiority of the land system of the United States. Under the system of the general government, the wisdom of which, in some respects, is admitted, even by the report of the land committee, the country subject to its operation, beyond the Alleghany mountains, has rapidly advanced in population, improve- ment, and prosperity. The example of the state of Ohio was emphatically relied on by the report of the committee of manufac- tures- its million of people, its canals, and other improvements, its flourishing towns, its highly-cultivated fields, all put there within less than forty years. To weaken the force of this example, the land committee deny that the population of the state is principally settled upon public lands derived from the general government. But, Mr. President, with great deference to that committee, I must sny, that it labors under misapprehension. Three fourths, if not four fifths of the population of that s'ate, are settled upon public lands purchased from the United States, and they are the most 1G1 6 SPEECHES OF HENRY CLAY. flourishing parts of the state. For the correctness of this statement, I appeal to my friend from Ohio, (Mr. Ewing,) near me. He knows, as well as I do, that the rich valleys of the Miami of Ohio) and the Maumee of the Lake, the Sciota and the Muskingum, are principally settled by persons deriving titles to their lands from the United States. In a national point of view, one of the greatest advantages which these public lands in the west, and this system of selling them, affords, is the resource which they present against pressure and wani, in other parts of the union, from the vocations of society being too closely filled, and too much crowded. They constantly tend to sustain the price of labor, by the opportunity which they offer, of the acquisition of fertile land at a moderate price, and the consequent temptation to emigrate from those parts of the union where labor may be badly rewarded. The progress of settlement, and the improvement in the fortunes and condition of individuals, under the operation of this beneficent system, are as simple as they are manifest. Pioneers of a more adventurous character, advancing before the tide of emigration, penetrate into the uninhabited regions of the west. They apply the axe to the forest, which falls before them, or the plough to the prairie, deeply sinking its share in the unbroken wild grasses in which it abounds. They build houses, plant orchards, enclose fields, cultivate the earth, and rear up families around them. Meantime, the tide of emigration flows upon them, their improved farms rise in value, a demand for them takes place, they sell to the' new comers, at a great advance, and proceed further west, with ample means to purchase from government, at reasonable prices, sufficient land for all the members of their families. Another and another tide succeeds, the first pushing on westwardly the previous settlers, who, in their turn, sell out their farms, constantly augment- ing in price, until they arrive at a fixed and stationary value. In this way, thousands, and tens of thousands, are daily improving their circumstances, and bettering their condition. I have often witnessed this gratifying progress. On the same farm you may sometimes behold, standing together, the first rude cabin of round and unhewn logs, and wooden chimneys, the hewed log house, chinked and shingled, with stone or brick chimneys, and. lastly, the comfortable brick or stone dwelling, each denoting the different occupants of the farm, or the several stages of the condition of the same occupant. What other nation can boast of such an outlet for its increasing population, such bountiful means of promoting their prosperity, and securing their independence To the public lands of the United States, and especially to the existing system by which they are distributed with so much reg- ularity and equity, are we indebted for these signal benefits in our national condition. And every consideration of duty, to ourselves, 62 ON THE PUBLIC LANDS. and to posterity, enjoins that we should abstain from the adoption of any wild project that would cast away this vast national property, holden by the general government in sacred trust for the whole people of the United States, and forbids that we should rashly touch a system which has been so successfully tested by experience. It has been only within a few years, that restless men have thrown before the public their visionary plans for squandering the public domain. With the existing laws, the great state of the west is satisfied and contented. She has felt their benefit, and grown great and powerful under their sway. She knows and testifies to the liberality of the general government, in the adminis- tration of the public lands, extended alike to her and to the other new states. There are no petitions from, no movements in Ohio, proposing vital and radical changes in the system. During the long period, in the house of representatives, and in the senate, that her upright and unambitious citizen, the first representative of that state, and afterwards successively senator and governor, presided over the committee of public lands, we heard of none of these chimerical schemes. All went on smoothly, and quietly, and safely. No man, in the sphere within which he acted, ever com- manded or deserved the implicit confidence of congress, more than Jeremiah Morrow. There existed a perfect persuasion of his entire impartiality and justice between the old states and the new. A few artless but sensible words, pronounced in his plain Scotch Irish dialect, were always sufficient to insure the passage of any bill or resolution which he reported. For about twenty-five years, there was no essential change in the system; and that which wvas at last made, varying the price of the public lands from two dollars, at which it had all that time remained, to one dollar and a quarter, at which it has been fixed only about ten or twelve years, was founded mainly on the consideration of abolishing the previous credits. Assuming the duplication of our population in terms of tvwenty- five years, the demand for waste land, at the end of every term, will at least be double what it was at the commencement. But the ratio of the increased demand will be much greater than the increase of the whole population of the United States, because the wvestern states nearest to, or including the public lands, populate much more rapidly than other parts of the union; and it will be from them that the greatest current of emigration will flow. At this moment, Ohio, Kentucky, and Tennessee, are the most migrating states in the union. To supply this constantly augmenting demand, the policy, which has hitherto characterized the general government, has been highly liberal both towards individuals and the new states. Large tracts, far surpassing the demand of purchasers, in every climate and situation, adapted to the wants of all parts of the union, are brought 63 SPEECHES OF HENRY CLAY. into market at moderate prices, the government having sustained all the expense of the original purchase, and of surveying, narking, and dividing the land. For fifty dollars any poor man may purchase forty acres of first-rate lanid; and, for less than the wages of one year's labor hie mllay buy eighty acres. To the new stales, also, has the government been liberal and generous in the grants for schools and for internal improvements, as well as in reducing the debt, contracted for the purchase of lands, by the citizens of those states, who were tempted, in a spirit of inordinate speculation, to purchase too much, or at too high prices. Such is a rapid outline of this invaluable national property, of the system which regulates its management and distribulion, and of the effects of that system. We might here pause, and wonder that there should be a disposition with any to waste or throw away this great resource, or to abolish a system which has been fraught with so many manifest advantages. Nevertheless, there are such, who, impatient with the slow and natural operation of wvise laws, have put forth various pretensions and projects concerning the public lands, within a few years past. One of these pretensions is, an assumption of the sovereign right of the new states lo all the lands within their respective limits, to the exclusion of the general government, and to the exclusion of all the people of the United States, those in the new states only excepted. It is my purpose now to trace the origin, examine the nature, and expose the injus- tice, of this pretension. This pretension may be fairlV ascribed to the propositions of the gentleman from Missouri, (Mr. Benton,) to graduate the public lands, to reduce the price, and cede the 'refuse' lands, (a term which I believe originated with him,) to the states within which they lie. Prompted, probably, by these propositions, a late governor of Illinois, unwilling to be outdone, presented an elaborate message to the legislature of that state, in which he gravely and formally asserted the right of that state to all the land of the United States, comprehended within its limits. It must be allowved that the governor was a most impartial judge, and the legislature a most disinterested tribunal, to decide such a question. The senator from Missouri was chanting most sweetly to the tune, 'refuse lands,' 'refuse lands,' 'refuse lands,' on the Missouri side of the Mississippi, and the soft strains of his music, having caught the ear of his excellency, on the Illinois side, he joined in chorus, and struck an octave higher. The senator from Missouri wished only to pick up some crumbs which fell from Uncle Sam's table; but the governor resolved to grasp the whole loaf. The senator modestly claimed only an old, smoked, rejected joint; but the stomach of his excellency yearned after the whole bog! The governor peeped over the Mississippi into Missouri, and saw the senator leisurely roaming in some rich pastures, on. bits of refuse 64 ON THE PUBLIC LANDS. 65 lands. He returned to Illinois, and, springing into the grand prairie, determined to claim and occupy it, in all its boundless extent. Then came the resolution of the senator from Virginia, (M\r. Tazewell,) in May, 1826, in the following words: ' Resolved, that, .s expedient for the United States to cede and surrender to the several states, within whose limits the same may be situated, all the right, title, and interest of the United States, to any lands lying and being within the boundaries of such states, respectively, upon such terms and conditions as may be consistent with the due observance of the public faith, and with the general interest of the United States.' The latter words rendered the resolution somewhat ambiguous. but still it contemplated a cession and surrender. Subsequently, the senator from Virginia proposed, after a certain time, a gratu- itous surrender of all unsold lands, to be applied by the legislature, in support of education and the internal improvement of the state. [Here Mr. Tazewell controverted the statement. Mr. Clay called to the secretary to Band him the journal of April, 1828, which he held up to the senate, and read from it the following: ' The bill to graduate the price of the public lands. to make donations thereof to actual settlers, and to cede the refuse to the states in which they lie, being utnder consideration - 'Mr. Tazewell moved to insert the following as a substitute: That the lands which shall have been subject to sale tinder the provisions of this act, and shall remain unsold for two years, after having been offered at twenty-five cents per acre, shall be, and the same is. ceded to the state in which the same may lie, to be applied by the legislature thereof in support of education, and the internal improvement of ltie state.'] Thus it appears not only that the honorable senator proposed the cession, but showed himself the friend of education and infernal improvements, by means derived from the general government. For this liberal disposition on his part, I believe it was, that the state of Missouri honored a new countv with his name. If he had carried his proposition, that state might well have granted a princi- pality to him. The memorial of the legislature of Illinois, probably produced by the message of the governor already noticed, had been presented, asserting a claim to the public lands. And it seetus, (although the fact had escaped my recollection until I was reminded of it by one of her senators, (M\r. Hendricks,) the other day,) that the legislature of Indiana had instructed her senators to bring forwvard a similar claim. At the last session, however, of the legislature of that state, resolutions had passed, instructing her delegation to obtain from the general government cessions of the unappropriated public. lands, on the most favorable terms. It is clear from this hist expression of the whill of that legislature, that, on reconsideraticn, it believed the right to the public lands to be in the general govern- ment, and not in the state of Indiana. For, if they did not belong VOL. 11. 9 65 8 SPEECHES OF ]HENRI CLAY. to the general government, it had nothing to cede; if they belonged already to the state, no cession was necessary to the perfection of the right of the state. I will here submit a passing observation. If the general govern- ment had the power to cede the public lands to the new states for particular purposes, and on prescribed conditions, its power must be unquestionable to make some reservations for similar purposes in behalf of the old states. Its power cannot be without limit as to the new states, and circumscribed and restricted as to the old. Its capacity to bestow benefits or dispense justice is not confined to the new states, but is coextensive with the whole union. It may grant to all, or it can grant to none. And this comprehensive equity is not only in conformity with the spirit of the cessions in the deeds from the ceding states, but is expressly enjoined by the terms of those deeds. Such is the probable origin of the pretension which I have been tracing; and now let us examine its nature and foundation. The argument in behalf of the new states, is founded on the notion, that as the old states, upon coming out of the revolutionary war, had or claimed a right to all the lands within their respective limits; and as the new states have been admitted into the union on the same footing and condition in all respects with the old, therefore they are entitled to all the waste lands embraced within their boundaries. But the argument forgets that all the revolutionary states had not waste lands; that some had but very little, and others none. It forgets that the right of the states to the waste lands within their limits was controverted; and that it was insisted that, as they had been conquered in a common war, waged with common means, and attended with general sacrifices, the public lands should be held for the common benefit of all the states. It forgets that in consequence of this right, asserted in behalf of the whole union, the states that contained any large bodies of waste lands (and Virginia, particularly, that had the most) ceded them to the union, for the equal benefit of all the states. It forgets that the very equality, which is the basis of the argument, would be totally subverted bv the admission of the validity of the pretension. For how would the matter then stand The revolutionary states will have divested themselves of the large districts of vacant lands which they contained, for the common benefit of all the states; and those same lands will enure to the benefit of the new states exclusively. There will be, on the supposition of the validity of the pretension, a reversal of the condition of the two classes of states. Instead of the old having, as is alleged, the wild lands which they included at the epoch of the revolution, they will have none, and the new states all. And this in the name and for the purpose of equality among all the members of the confederacy! What, especially, would be the situation of Virginia She magnanimously cedeed 66 ON THE PUB LIC LANDS. 67 an empire in extent for the common benefit. And now it is proposed not only to withdraw that empire from the object of its solemn dedication, to the use of all the states, but to deny her any partici- pation in it, and appropriate it exclusively to the benefit of the new states carved out of it. If the new states had any right to the public lands, in order to produce the very equality contended for, they ought forthwith to cede that right to the union, for the common benefit of all the states. Having no such right, they ought to acquiesce cheerfully in an equality which does, in fact, now exist between them and the old states. The committee of manufactures has clearly shown, that if the right were recognised in the new states now existing, to the public lands within their limits, each of the new states, as they might hereafter be successively admitted into the union, would have the same right; and, consequently, that the pretension under examina- tion embraces, in effect, the whole public domain, that is, a billion and eighty millions of acres of land. The right of the union to the public lands is incontestable. It ought not to be considered debatable. It never was questioned but by a few, whose monstrous heresy, it was probably supposed, would escape animadversion from the enormity of the absurdity, and the utter impracticability of the success of the claim. The right of the whole is sealed by the blood of the revolution, founded upon solemn deeds of cession from sovereign states, deliberately executed in the face of the world, or resting upon national treaties concluded with foreign powers, on ample equivalents contributed from the common treasury of the people of the United States. This right of the whole was stamped upon the face of the new states at the very instant of their parturition. They admitted and recognised it with their first breath. They hold their stations, as members of the confederacy, in virtue of that admission. The senators who sit here and the members in the house of representa- tives from the new states, deliberate in congress with other senators and representatives, under that admission. And since the new states came into being, they have recognised this right of the general government by innumerable acts - By their concurrence in the passage of hundreds of laws respect- ing the public domain, founded upon the incontestable right of the whole of the states; By repeated applications to extinguish Indian titles, and to survey the lands which they covered; And by solicitation and acceptance of extensive grants of the public lands from the general government. The existence of the new state is a falsehood, or the right of all the states to the public domain is an undeniable truth. They have no more right to the public lands, within their particular jurisdic- 67 SPEECHES OF HENRY CLAY. lion, than other states have to the mint, the forts and arsenals, or- public ships, within theirs, or than the people of the District of C olumbia have to this magnificent capitol, in whose splendid halls we now deliberate. The equality contended for between all the states now exists. The public lands are now held, and ought to be held and adminis- tered for the common benefit of all. 1 hope our fellow-citizens of Illinois, Indiana, and Missouri, will reconsider the matter; that they will cease to take counsel from demagogues who would decceivc them, and instil erroneous principles into their ears; and that they will feel and acknowledge that their brethren of Kentucky and of Ohio, and of all the states in the union, have an equal right with the citizens of those three states, in the public lands. If the possi- bility of an event so direful as a severance of this union were for a moment contemplated, what would be the probable consequence of such an unspeakable calamity; if three confederacies were formed out of its fragments, do you imagine that the western confederacy would consent to have the states including the public lands hold them exclusively for themselves Can you imagine that the states of Ohio, Kentucky, and Tennessee, would quietly renounce their right in all the public lands west of them No, sir! No, sir! They would wade to their knees in blood, before they would make such an unjust and ignominious surrender. But this pretension, unjust to the old states, unequal as to all, would be injurious to the new states themselves, in whose behalf it has been put forth, if it were recognised. The interests of the new states is not confined to the lands within their limits, but extends to the whole billion and eighty millions of acres. Sanction the claims, however, and they are cut down and restricted to that which is included in their own boundaries. Is it not better for Ohio, instead of the five millions and a half, or Indiana, instead of the fifteen millions, or even for Illinois, instead of the thirtV-one or thirty-Iwo millions, or Missouri, instead of the thirty-eight mil- lions, within their respective limits, to retain their interest in those several quantities, and also to retain their interest, in common with the other members of the union, in the countless millions of acres that lie west, or northwest, beyond them I will now proceed, Mr. President, to consider the expediency of a reduction of the price of the public lands, and the reasons assigned by the land committee, in their report, in favor of that measure. They are presented there in formidable detail, and spread out under seven different heads. Let us examine them; the first is, ' because the new states have a clear right to participate in the benefits of a reduction of the revenue to the wants of the government, by getting, the reduction extended to the article of revenue chiefly used by them.' Here is a renewal of the attem jt made early in the session, to confound the public lands with foreign 68 ON TIE PUBLIC LANDS. C9 imports, which was so successfully exposed and refuted by the report of the committee on manufactures. Will not the new states participate in aiiy reduction of the revenue, in common with the old slates, without touching the public lands As far as they are consumers of objects of foreign imports. will they not equally share the benefit with the old states What right, over and above that equal participation, have the new states, to a reduction of the price of the public lands As states, what right, much less what 'clear right' have they, to any such reduction In their sovereign or corporate capacities, -,what right Have not all the stipulations betwveen them, as states, and the general government, been fully complied with Have the people within the new states, considered distinct from the states themselves, any right to such a reduction ! Whence is it derived They wvent there in pursuit of their own happiness. They bought lands from the public because it was their iliterest to malke the purchase, and they enjoy them. Did hley, because they purchased some land, which they possess peace- fully. acquire any, and what rigllt, in the land which they did not buy But it may be argued, that by settling and improving these lands, the adjacent public lands are enhanced. True; and so are their own. The enhancement of the public lands was not a consequence which they went there to produce, but was a collateral effect, as to -Iwhich they were passive. The public does not seek to avail itself of this augmentation in value, by augmenting the price. It leaves that where it was; and the demand for reduction is made in behalf of those who say their labor has increased the value of the public lands, and the claim to reduction is founded ui pon the fact of enhanced value The public, like all other land- holders, had a righi to anticipate that the sale of a part would communicate, incidentally, greater value upon the residue. And, like all other land proprietors, it has the right to ask more for that residue; but it does not, and, for one, I should be as unwilling to disturb the existing price by augmentation as by reduction. But the public lands is the article of revenue which the people of the new states chiefly consume. In another part of this report, liberal grants of the public lands are recommended, and the idea of hold- ing the public lands as a source of revenue is scouted; because, it is said, more revenue could be collected from the settlers as consumers, than from the lands. Here it seems that the public lands are the articles of revenue chiefly consumed by the new states. With respect to lands yet to be sold, they are open to the purchase alike of emigrants from the old states, and settlers in the newr. As the latter have most generally supplied themselves with lhnds, the probability is, that the emigrants are more interested in the question of reduction than the settlers. At all events, there can be no peculiar right to such reduction existing in the new states. It is a question common to all, and to be decided in reference to the interest of the whole union. 69 7 SPEECHES OF HENRY CLAY. Second. ' Because the public debt being now paid, the public lands are entirely released from the pledge they were under to that object, and are free to receive a new and liberal destination,for the relief of the states in which they lie.' The payment of the public debt is conceded to be near at hand; and it is admitted that the public lands, being liberated, may now receive a new and liberal destination. Such an appropriation of their proceeds is proposed by the bill reported by the committee of manufactures, and to which I shall hereafter more particularly call the attention of the senate. But it did not seem just to that com- mittee, that this new and liberal destination of them should be restricted ' for the relief of the states in which they lie,' exclusively, but should extend to all the states indiscriminately, upon principles of equitable distribution. Third. 'Because nearly one hundred millions of acres of the land now in market are the refuse of sales and donations, through a long series of years, and are of very little actual value, and only fit to be given to settlers, or abandoned to the states in which they lie.' According to an official statement, the total quantity of public land which has been surveyed up to the thirty-first of December last, was a little upwards of one hundred and sixty-two millions of acres. Of this, a large proportion, perhaps even more than the one hun- dred millions of acres stated in the land report, has been a long time in market. The entire quantity which has ever been sold by the United States, up to the same day, after deducting lands relin- quished and lands reverted to the United States, according to an official statement, also, is twenty-five million two hundred forty- two thousand five hundred and ninety acres. Thus after the lapse of thirty-six years, during which the present land system has been in operation, a little more than twenty-five millions of acres have been sold, not averaging a million per annum, and upwards of one hundred millions of the surveyed lands remain to be sold. The argument of the report of the land committee assumes, that ' nearly one hundred millions are the refuse of sales, and donations,' are of very little actual value, and only fit to be given to settlers, or aban- doned to the states in which they lie. Mr. President, let us define as we go -let us analyze. What do the land committee mean by 'refuse land' Do they mean worthless, inferior, rejected land, which nobody will buy at the present government price Let us look at facts, and make them our guide. The government is constantly pressed by the new states to bring more and more lands into the market; to extinguish more Indian titles; to survey more. The new states themselves are probably urged to operate upon the general government by emigrants and settlers, wvho see still before them, in their progress west, other new lands which they desire. The general government yields to the solicitations. It throws more land into the market, 70 ON THE PUBLIC LANDS. 31 and it is annually and daily preparing additional surveys of fresh lands. It has thrown and is preparing to throw open to purchas- ers already one hundred and sixty-two millions of acres. And now, because the capacity to purchase, in its nature limited by the growth of our population, is totally incompetent to absorb this im- mnense quantity, the government is called upon, by some of the very persons who urged the exhibition of this vast amount to sale, to consider all that remains unsold as refuse! Twenty-five mil- lions in thirty-six years only are sold, and all the rest is to be looked upon as refuse. Is this right If there had been five hundred millions in market, there probably would not have been more or much more sold. But I deny the correctness of the conclusion that it is worthless because not sold. It is not sold, because there were not people to buy it. You must have gone to other countries, to other worlds, to the moon, and drawn from thence people to buy the prodigious quantity which you offered to sell. Refuse land! A purchaser goes to a district of country and buys out of a township a section which strikes his fancy. He ex- hausts his money. Others might have preferred other sections. Other sections may even be better than his. He can with no more propriety be said to have ' refused' or rejected all the other sections, than a man who, attracted by the beauty, charms, and accomplish- inents of a particular lady, marries her, can be said to have reject- ed or refused all the rest of the sex. Is it credible, that out of one hundred and fifty or one hundred and sixty millions of acres of land in a valley celebrated for its fer- tility, there are only about twenty-five millions of acres of good land, and that all the rest is refuse Take the state of Illinois as an example. Of all the states in the union, that state probably contains the greatest proportion of rich, fertile lands; more than Ohio, more than Indiana, abounding as They both do in fine lands. Of the thirty-three millions and a half of public lands in Illinois, a little more only than two millions have been sold. Is the residue of thirty-one millions all refuse land Who that is acquainted in the west can assert or believe it No, sir; there is no such thing. The unsold lands are unsold because of the reasons already as- signed. Doubtless there is much inferior land remaining, but a vast quantity of the best of lands also. For its timber, soil, water- power, grazing, minerals, almost all land possesses a certain value. If the lands unsold are refuse and worthless in the hands of the general government, why are they sought after with so much avid- ity If in our hands they are good for nothing, what more would they be worth in the hands of the new states ' Only fit to be given to settlers!' What settlers would thank you what settlers would not scorn a gift of refuse, worthless land If you iriean to be generous, give them what is valuable; be manly in your generosity. 71 7 SPEECHES OF HENRY CLAY. But let us examine a little closer this idea of refuse land. If there be any state in which it is to be found in large quantilies, that state would be Ohio. It is the oldest of the new states. There the public lands have remained longer exposed in the market. But there we find only five millions and a half to be sold. And I hold in my hand an account of sales in the Zanesville district, one of the oldest in that state, made during the present year. It is in a paper, entitled the ' Ohio Republican,' published at Zanesville, the twenty-sixth of May, 1832. The article is headed 'refuse land,' and it states: 'it has suited the interest of somne to represent the lands of the United States which have remained in market for many years, as mere ' refuse' which cannot be sold; and to urge a rapid reduction of price, and the cession of the residue, in a short period, to the states in which they are situated. It is strongly urged against this plan, that it is a speculating project, which, by alienating a large quantity of land from the United States, will cause a great increase of price to actual settlers, in a few years; instead of their being able for ever, as it may be said is the case under the present system of land sales, to obtain a farm at a reasonable price. To show how far the lands unsold are from being worthless, we copy from the Gazette the following statement of recent sales in the Zanesville district, one of the oldest districts in the west. The sales at the Zanesville land-office, since the commencement of the present year, have been as follows; January, seven thousand one hundred and twenty dollars and eighty cents; February, eight thous- and five hundred and forty-two dollars and sixty-seven cents; March, eleven thousand seven hundred and forty-four dollars and seventv-' five cents; April, nine thousand two hunidred and nine dollars and nineteen cents; and since the first of the present month about nine thousand dollars worth have been sold, more than half of which was in forty acre lots.' And there cannot be a doubt that the act, passed at this session, authorizing sales of forty acres, will, from the desire to make additions to farms, and to settle young members of families, increase the sales very much, at least during this year. A friend of mine in this city bought in Illinois, last fall, about two thousand acres of this refuse land, at the minimum price, for which he has latelv refused six dollars per acre. An officer of this body, now in my eye, purchased a small tract of this same refuse land, of one hundred and sixty acres, at second or third hand, entered a few years ago, and which is now estimated at one thousand and nine hundred dollars. It is a business, a very profitable business, at which fortunes are made in the new states, to purchase these refuse lands, and, without improving them, to sell them at large advances. Far from being discouraged by the fact of so much surveyed public land remaining unsold, we should rejoice that this bountiful resource, possessed by our country, remains in almost undimin- ished quantity, notwithstanding so many new and flourishing states 72 ON THE PUBLIC LANDS. have sprung up in the wilderness, and so many thousands of farni- lies have been accommodated. It mnight bie othlerwisv, if Ise pubic land was dealt out by government with a sparing, grudging, grip,- ing hand. But they are liberally offered, in exhaustless qualhi 5, and it moderate prices, enriching individuals, and tending to flic rapid improvement of the country. The two important fats brought forward and emphatically dwelt on by the committee of manufactures, stand in their full force, unaffected by any thing stated in the report of the land committee. These facts must carry conviction to every unbiased mind, that wvill deliberately consider them. The first is, the rapid increase of the new states, far outstripping the old, averaging annually an increase of eight and a half percentuin, and doubling of course in twelve years. One of these states, Illinois, full of refuse land, increasing at the rate of eighteen an d a half per centum ! Would this astonishing growth take place if the lands were too high, or all the good land sold( The other fact is, the vast increase in the annual sales-in 1830, rising of three millions. Since the report of the committee of manufactures, the returns have come in of the sales of last year, which had been estimated at three millions. They were, in fact, three million five hundred and sixty-six thousand one hundred and twenty-seven dollars and ninety-four cents! Their progres- sive increase baffles all calculation. Would this happen, if the price were too high It is argued, that the value of different townships and sections is various ; and that it is, therefore, swrong to fix the same price for all. The variety in the quality, situation, and advantages, of different tracts, is no doubt great. After the adoption of arty system of classification, there would still remnain verv great diversity in the tracts belonging to the same class. This is the law of nature. The presumption of inferiority, and of refuse landl, Iounde(l upon the length of limne that the land has been in mlarket, is denied, for reasons already stated. The offer, at public anction, of all lands to the highest bidder, previous to their being sold at private sale, provides in some degree for the variety in the value, since each plurcliaser pushes the land up to the price Nvhieh, according to his opinion, it ought to command. But if the price demnanded by g(overnment is not too high for the good land, (atid no one cati believe it,) why not wait until tlhat is sold, before any reduction in the price of the had And that will not be soI(l for manny Vears to come. It would he quite as wrong to bring the pr-ice of g(;od lan'J dow.,-n to the standard of the bad, as it is alleged to be, to carry the latter up !o that of the former. Until the good land is sold there wvill be no ptirchasers of the bad: for, as has been stated iln the report of Ihe committee of manufactures, a discreet farmer would rather give a dollar and a quarter per acre for first-rate land, than accept refuse and worthless land as a present. VOL. 11. 10 73 SPEECHES OF HENRY CLAY. 'Fourth. Because the speedy extinction of the federal title within their limits is necessary to the independence of the new states, to their equality with the elder states; to the d'evlopmeitt of their resources; to the subjection of their soil to taxation, rultivation, and cidleent, and to the proper enjoyment of their j urisdiction and sovereignty.' All this is mere assertion and declamation. The general govern. ment, at a moderate price, is selling the public land as fast as it can find purchasers. The new states are populating with unexampled rapidity; their condition is now much more eligible than that of some of the old states. Ohio, I am sorry to be obliged to confess, is, in internal improvement and some other respects, fifty years in advance of her elder sister and neighbor, Kentucky. How have her growth and prosperity, her independence, her equality with the elder states, the development of her resources, the taxation, culti- vation, and settlement of her soil, or the proper enjoyment of her jurisdiction and sovereignty, been affected or impaired by the fed- eral title within her limits The federal title! It has been a source of blessings and of bounties, but not one of real grievance. As to the exemption from taxation of the public lands, and the exemption for five years of those sold to individuals, if the public land belonged to the new states, would they tax it And as to the latter exemption, it is paid for by the general government, as may be seen by refer- ence to the compacts; and it is, moreover, beneficial to the new states themselves, by holding out a motive to emigrants to purchase and settle within their limits. ' Sixth. Because the ramified machinery of the land-office department, and the own- ership of so much soil, extends the patronage and authority ofthe general government into the heart and rorners of the new states, and subjects their policy to the danger of aforeign and powerful influence.' A foreign and powerful influence! The federal government a foreign government! And the exercise of a legitimate control over the national property, for the benefit of the whole people of the United States, a deprecated penetration into the heart and corners of the new states! As to the calamity of the land offices, which are held within them, I believe that is not regarded by the people of these states with quite as much horror as it is by the land coni- mnittee. They justly consider that they ought to hold those offices themselves, and that no persons ought to be sent from the other for- eign states of this union to fill them. And, if the number of the offices were increased, it would not be looked upon by them as a grievous addition to the calamity. But what do the land committee mean by the authority of this foreign, federal government Surely, they do not desire to get rid of the federal government. And yet the final settlement of the land question will have effected but little in expelling its authority from the bosoms of the new states. Its action will still remainl in a thousand forms, and the heart and corners of the new states vill 74 ON THE PUBLIC LANDS. S. still be invaded by post-offices and post-masters, and post-roads, and the Cumberland road, and various other modifications of its power. ' Because the sum of four hundred and twenty-five millions of dollars, proposed to be drawn from the new states and territories, by the sale of their soil, at one dollar and twenty-five cents per acre. is unconscionable and impracticable -such as never can be paid-and the bare attempt to raise which, must drain, exhaust, and impover- ish these states. and give birth to the feelings, which a sense of injustice and oppres- sion never fail to excite, and the excitement of which should be so carefully avoided in a confederacy of free states.' In another part of this report the committee say, speaking of the immense revenue alleged to be derivable from the public lands, 'this ideal revenue is estimated at four hundred and twenty-five millions of dollars, for the lands now within the limits of the states and territories, and at one billion three hundred and sixty-three million five hundred and eighty-nine thousand six hundred and ninetv-one dollars for the whole federal domain. Such chimerical calculations preclude the propriety of argumentative answers.' Well, if these calculations are all chimerical, there is no danger, from the preservation of the existing land system, of draining, exhaustinog and impoverishing the new states, and of exciting them to rebellion. The manufacturing committee did not state what the public lands would, in fact, produce. They could not state it. It is hardly a subject of approximate estimate. The committee stated what would be the proceeds, estimated by the minimum price of the public lands; what, at one half of that price; and added, that, although there might be much land that would never sell at one dollar and a quarter per acre, 'as fresh lands are brought into market and exposed to sale at auction, many of themn sell at prices exceeding one dollar and a quarter per acre.' They concluded bv remarking, that the least favorable view of regarding them, was to consider them a capital yielding an annuity of three millions of dollars at this time; that, in a few years, that annuity would probably be doubled, and that the capital might then be assumed as equal to one hundred millions of dollars. Whatever may be the sum drawn from the sales of the public lands, it will be contributed, not by citizens of the stales alone in which they are situated, but by emigrants from all the states. And it will be raised, not in a single year, but in a long series of years. It would have been impossible for the state of Ohio to have paid, in one year, the millions that have been raised in that state, by the sale of public lands; but in a period of upwards of thirty years, the payment has been made, not only without impoverishing, but with the constantly increasing prosperity of the state. Such, Mr. President, are the reasons of the land committee, for the reduction of the price of the public lands. Some of them had 75 SPEECHES OF HENRY CLAY. been anticipated and refuted in the report of the manufacturing committee; and I hope that I have nowv shown the insolidity of the residue. I will not dwvell upon the consideration urged ill that report, against any large reduction, founded upon its inevitable tendency lo lessen the value of the landed property throughout the union, and that in the western states especially. That such would be the necessary consequence, no man can doubt, who will seriously reflect upon such a measure as that of throwing into market, immediately, upwards of one hundred and thirty millions of acres, an(l at no distant period upwards of two hundred millions. more, at greatly reduced rates. If the honorable chairman of the land committee, (Mr. King,) had relied upon his own sound practical sense, he would have presented a report far less objectionable than that which he has made. He has availed himself of another's aid, and the hand of tihe senator from Missouri, (Mr. Benton,) is as visible in the compo- sition, as if his name had been subscribed to the instrument. We hear again, in this paper, of that which we have so often heard repeated before in debate, by the senator from Missouri - the sentiments of Edmund Burke. And what was the state of things in England, to which those sentiments were applied England has too little land, and too many people. America has too much land, for the present population of the country, and wants people. The British crown had owned, for many genera- tions, large bodies of land, preserved for game and forest, from which but small revenues wvere derived. It was proposed to sell out the crown lands, that they might be peopled and cultivated, an(d that the royal family should be placed oil the civil list. Mr. Burke supported the proposition by convincing arguments. But what analogy is there between the crown lands of the British sovereign, and the public lands of the United States Arc they here locked up from the people, and, for the sake of their game or timber, excluded from sale Are not they freely exposed in mrarlket, to all who want them, at moderate prices The complaint is, that they are not sold fast enough, in other words, that people are not multiplied rapidly enough to buy them. Patience, gentle- men of the land committee, patience! The new states are daily rising in power and importance. Some of them are already great and flourishing irvembers of the confederacy. And, if you will only acquiesce in the certain and quiet operation of the laws of God and man, the wilderness will quickly teem with people, and be filled with the monuments of civilization. The report of the land committee proceeds to notice and to aninmadvert upon certain opinions of a late secretary of the treasury, contained in his annual report, and endeavors to connect them with some sentiments expressed in the report of the committee of 76 ON THE PUBLIC LANDS. 77 manufactures. That report has before been the subject of repeated commentary in the senate, by the senator from Missouri, and of much misrepresentlationl and vituperation in the public press. Mr. Rush showed me the rough draft of that report, and I advised him to expunge the paragraphs in question, because I foresaw that they would be misrepresented, and that he would be exposed to unjust accusation. But lknowing the purity of his intentions, believing in the soundness of the views which he presented, and confiding in the candor of a just public, he resolved to retain the paragraphs. I cannot suppose the senator from Missouri ignorant ofv what passed between Mr. Rush and me, and of his having, against my sugge tiOnS, retained the paragraphs inl question, because these facts wvere all stated by Mr. Rush himself, in a letter addressed to a late member of the lbouse of representatives, representing the district in which I reside, Which letter, more than a year ago, was published in the western papers. I shall sav nothing in defence of myself, nothing to disprove the charge of iny cherishing unfriendly feelings and sentiments towards any part of the west. If the public acts in which I have participated, if the uniform tenor of my whole life, will not refute such an imputation, nothing that I could here say would refute it. But I wvill say something in defence of the opinions of my late patriotic and enlightened colleague, not here to speak for himself; and I wfill vindicate his official opinions from the erroneous glosses and interpretations which have been put upon them. Mr. Rush, in an official report which will long remain a mon- ument of his ability, was surveying, with a statesman's eve, the condition of America. He wvas arguing in favor of the protective policv - the American system. He spoke of the limited vocations of our society, and the expediency of mnltiplying the means of increasing subsistence, comfort, and wealth. He noticed the great and the constant tendency of our fellow-citizens to the cultivation of 1he soil, the want of a market for their surplus produce, the inex- pediency of all blindly rushing to the same universal employment, and the policy of dividing ourselves into various pursuits. He says: 'The manner in which the remote lands of the United States are selling and settling, whilst it possibly may tend to increase more quickly the aggregate popula- tion of the country, and the mere means of subsistence, does not inerease capital in the same proportion. Anything that may serve to hold back this tendency to diffusion from running too far and too long into an extreme, can scarcely prove otherwise than sajutary If the population of these, (a major. itY of the states, including some western states,) not yet redundant in fact, though appearing to be so, under this legislative incitement to emigrate, remain fixed in more instances, as it probably would be by extending the motives to manufacturing labor, it Is believed that the nation would gain in two ways: first, by the more rapid accumu- lation of capital, and next, by the gradual reduction of the excess of its agricultural population over that engaged in other vocations. It is not imagined that it ever w ould be practicable, even if it were desirable, to turn this stream of emigration aside; but resources, opened through the influence of the laws, in new fields of industry, to the inhabitants of the states already sufficiently peopled to enter upon them, might operate to lessen, in some degree, and usefully lessen, its absorbing force.' 77 7 SPEECHES OF HENRY CLAY. Now, Mr. President, what is there in this view adverse to the west, or unfavorable to its interests Mr. Rush is arguing on the tendency of the people to engage in agriculture, and the incitement to emigration produced by our laws. Does he propose to change those laws in that particular Does he propose any new measure So far froni suggesting any alteration of the conditions on which the public lands are sold, he expressly says. that it is not desirable, if it were practicable, to turn this stream of emigration aside. Leaving all the laws in full force, and all the motives to emigration arising from fertile and cheap lands, untouched, he recommends the encouragement of a new branch of business, in which all the union, the west as well as the rest, is interested; thus presenting an option to population to engage in manufactures or in agricul- ture, at its own discretion. And does such an option afford just ground of coinplaint to any one Is it not an advantage to all Do the land committee desire (I am sure they do not) to create starvation in one part of the union, that emigrants may be forced into another If they do not, they ought not to condemn a multi- plication of human employments, by which, as its certain conse- quence, there will be an increase in the means of subsistence and comfort. The objection to Mr. Rush, then, is, that he looked at his whole country, and at all parts of it.; and that, whilst he desired the prosperity and growth of the west to advance undisturbed, lhe wished to build up, on deep foundations, the welfare of all the people. Mr. Rush knew that there were thousands of the poorer classes who never would emigrate; and that emigration, under the best auspices, was far from being unattended with evil. There are moral, physical, pecuniary obstacles to all emigration; and these will increase, as the good vacant lands of the west are removed, by intervening settlements further and further from society, as it is now located. It is, I believe, Dr. Johnson who pronounces, that of all vegetable and animal creation, man is the most difficult to be uprooted and transferred to a distant country; and lie was right. Space itself, mountains, and seas, and rivers, are imped- iments. The want of pecuniary means, the expenses of the outfit, subsistence and transportation of a family, is no slight circumstance. When all these difficulties are overcome, (and how few, cornpar- atively, can surmount them!) the greatest of all remains -that of being torn from one's natal spot - separated, for ever, from the roof under which the companions of his childhood were sheltered, from the trees which have shaded him from summer's heats, the spring from whose gushing fountain he has drunk in his youth, the tombs that hold the precious relic of his venerated ancestors! But I have said, that the land committee had attempted to confound the sentiments of Mr. Rush with some of the reasoning employed by the committee of manufactures against the proposed 78 ON THE PUBLIC LANDS. 79 reduction of the price of the public lands. What is that reasoning Here it is; it will speak for itself; and without a single comment will demonstrate how different it is from that of the late secretary of the treasury, unexceptionable as that has been shown to be. 'The greatest emigration, (says the manufacturing committee,) that is believed now to take place from any of the states, is from Ohio, Kentucky, and Tennessee. The effects of a material reduction in the price of the public lands, would be, first, to lessen the value of real estate in those three states; secondly, to diminish their interest in the public domain, as a common fund for the benefit of all the states; and, thirdly, to offer what would operate as a bounty to further emigration from those states, occasioning more and more lands, situated within them, to be thrown into the market, thereby not only lessening the value of their lands, but draining them, both of their population and labor.' There are good men in different parts, but especially in the Atlantic portion, of the union, who have been induced to regard lightly -this vast national property; who have been persuaded that the people of the west are dissatisfied with the administration of it; and who believe that it will, in the end, be lost to the nation, and that it is not worth present care and preservation. But these are radical mistakes. The great body of the west are satisfied, perfectly satisfied, with the general administration of the public lands. They would indeed like, and are entitled to, a more liberal expenditure among them of the proceeds of the sales. For this provision is made by the bill to which I will hereafter call the attention of the senate. But the great body of the west have not called for, and understand too well their real interest to desire, any essential change in the system of survey, sale, or price of the lands. There may be a few, stimulated by demagogues, who desire change; and what system is there, what government, what order of human society, in which a few do not desire change It is one of the admirable properties of the existing system, that it contains within itself and carries along principles of conserva- tion and safety.' In the progress of its operation, new states be- come identified with the old, in feeling, in thinking, and in interest. Now, Ohio is as sound as any old state in the union, in all her views relating to the public lands. She feels that her share in the exterior domain is much more important than would be an exclu- sive right to the few millions of acres left unsold, within her limits, accompanied by a virtual surrender of her interest in all the other public lands of the United States. And I have no doubt, that noW', the people of the other new states, left to their own unbiased sense of equity and justice, would form the same judgment. They cannot believe that what they have not bought, what remains the property of themselves and all their brethren of the United States, in common, belongs to them exclusively. But if I am mistaken, if they have been deceived by erroneous impressions on their mind, made by artful men, as the sales proceed, and the land is exhausted, 79 SPEECHES OF HENRY CLAY. and their population increased, like the state of Ohio, they will feel that their true interest points to their remaining copartners ill the whole national domain, instead of bringing forward an un- founded pretension to the inconsiderable remnant which will be then left in their own limits. And now, Mr. President, I have to say something in respect to the particular plan brought forward by the committee of manufac- tures, for a temporary appropriation of the proceeds of the sales of the public lands. The committee say that this fund is not wanted by the general government; that the peace of the country is not likely, from present appearances, to be speedily disturbed; and that the general government is absolutely embarrassed in providing against an enormous surplus in the treasury. While this is the condition of the federal government, the states are in want of, and can most beneficially use, that very surplus with which we do not knoxv what to do. The powers of the general government are limited; those of the states are ample. If those limited powers authorized an application of the fund to some objects, perhaps there are some others, of more importance, to which the powers of the states would be more competent, or to which they may apply a more provident care. But the government of the whole and of the parts, at last is but one government of the same people. In form they are two, in substance one. They both stand under the same solemn obligation to promote, by all the powers with which they are respectively intrusted, the happiness of the people; and the people, in their turn, owe respect and allegiance to both. AMainlaining these rela- lions, there should be mutual assistance to each other afforded by these taco systems. When the states are full-handed, and the coffers of the general government are emnpty, the slates should come to the relief of the general government, as many of them did, most promptly and patriotically, during the late war. When the conditions of the parties are reversed, as is now the case, the states w,-antingv what is almost a burden to the general government, the duty of this government is to go to the relief of the states. They were views like these which induced a majority of the committee to propose the plan of distribution, contained it] the bill now under consideration. For one, however, I will again repeat the declaration, which I made early in the session, that I unite cordially with those who condemn the application of any principle of distribution among the several states, to surplus reveniue derived from taxation. I think income derived from taxation stands upon ground totally distinct from that which is received from 1l1e public lands. Congress can prevent the accumulation, at least for anyv considerable time, of revenue from duties. by suitable legislation, lowvering or augmenting the imposts; but it cannot stop the sales of the public lands, without the exercise of arbitrary and intolera- so ON THE PUBLIC LANDS. ble power. The powers of congress over the public lands are broader and more comprehensive, than those which they possess over taxation, and the money produced by it. This brings me to consider, first, the power of congress to malke the distribution. By the second part of the third section of the fourth article of the constitution, congress 'I have power to dispose of and make all needful rules and regulations respecting the territory or other property of the United States.' The power of disposition is plenary, unrestrained, unqualified. It is not limited to a specified object or to a defined purpose, but left applicable to any object or purpose which the wisdom of congress shall deem fit, acting under its high responsibility. The government purchased Louisiana and Florida. May it not apply the proceeds of lands within those countries, to any object which the good of the union may seem to indicate If there be a restraint in the constitution, where is it, what is it The uniform practice of the government has conformed to the idea of its possessing full powers over the public lands. They have been freely granted, from time to time, to communities and individuals, for a great variety of purposes. To states for educa- tion, internal improvements, public buildings; to corporations for education; to the deaf and dumb; to the cultivators of the olive and the vine; to preEmptioners; to general Lafayette, and so forth. The deeds from the ceding states, far from opposing, fully warrant the distribution. That of Virginia ceded the land as 'a common fund for the use and benefit of suck. of the United States as have become, or shall become, members of the confederation or federal alliance of the said states, Virginia inclusive." The cession was for the benefit of all the states. It may be argued, that thle fund must be retained in the common treasury, and thence paid out. But by the bill reported, it will conme into the common treasury, and then the question, how it shall be subsequently applied for the use and benefit of such of the United States as compose the confederacy, is one of modus only. Whether the money is disbursed by the general government directly, or is paid out upon some equal and just principle, to the states, to be disbursed by them, cannot affect the right of distribution. If the general govern- ment retained the power of ultimate disbursement, it could execute it only by suitable agents; and what agency is more suitable than that of the states themselves If the states expend the money, as the bill contemplates, the expenditure will, in effect, be a disburse- ment for the benefit of the whole, although the several states are organs of the expenditure; for the whole and all the parts are identical. And, whatever redounds to the benefit of all the parts, necessarily contributes, in the same measure, to the benefit of the whole. The great question should be, is the distribution upon equal and just principles And this brings me to consider, VOL. f1. 11 81 2 SPEECHES OF HENRY CLAY. Secondly, the terms of the distribution proposed by the bill of the committee of manufactures. The bill proposes a division of the net proceeds of the sales of the public lands, among the several states composing the union, according to their federal representative population, as ascertained by the last census; and it provides for new states, that may hereafter be admitted into the union. The basis of the distribution, therefore, is derived from the constitution itself, which has adopted the same rule, in respect to representation and direct taxes. None could be more just and equitable. But it has been contended in the land report, that the revolu- tionary states which did not cede their public lands, ought not to be allowed to come into the distribution. This objection does not apply to the purchases of Louisiana and Florida, because the consideration for them was paid out of the common treasury, and was consequently contributed by all the states. Nor has the objection any just foundation, when applied to the public lands derived from Virginia, and the other ceding states; because, by the terms of the deeds, the cessions were made for the use and benefit of all the states. The ceding states having made no exception of any state, what right has the general government to interpolate in the deeds, and now create an exception The general government is a mere trustee, holding the domain in virtue of those deeds, according to the terms and conditions which they expressly describe; and it is bound to execute the trust accordingly. But how is the fund produced by the public lands now expended It comes into the common treasury, and is disbursed for the corn- mon benefit, without exception of anv state. The bill only proposes to substitute to that object, now no longer necessary, another and more useful common object. The general application of the fund will continue, under the operation of the bill, although the particular purposes may be varied. The equity of the proposed distribution, as it respects the two classes of states, the old and the new, must be manifest to the senate. It proposes to assign to the new states, besides the five per centum stipulated for in their several coinpacts with the general government, the further sum of ten per centum upon the net proceeds. Assuming the proceeds of the last year, amounting to three millions five hundred and sixty-six thousand one hundred and twentv-seven dollars and ninety-four cents, as the basis of the calculation, I hold in my hand a paper which shows the sum that each of the seven new states would receive. They have com- plained of the exemption from taxation of the public lands sold by the general government for five years after the sale. If that exemption did not exist, and they were to exercise the power of taxing those lands, as the average increase of their population is only eight and a half per centum per annum, the additional revenue 82 ON THE PUBLIC LANDS. which they would raise, would be only eight and a half per centuin per annum; that is to say, a state now collecting a revenue of one hundred thousand dollars per annum, would collect only one hundred and eight thousand five hundred, if it were to tax the lands recently sold. But by the bill under consideration, each of the seven new states will annually receive, as its distributive share, more than the whole amount of its annual revenue. It may be thought, that to set apart ten per centum to the new states, in the first instance, is too great a proportion, and is unjust towards the old states. But it webill be recollected that, as they populate much faster than the old states, and as the last census is to govern in the apportionment, they ought to receive more than the old states. If they receive too much at the commencement of the term, it may be neutralized by the end of it. Afrer the deduction shall have been made of the fifteen per centum allotted, to the new states, the residue is to be divided among the twenty-four states, old and new, composing the union. What each of the states would receive, is shown by a table annexed to the report. Taking the proceeds of the last year as the standard, there must be added one sixth to what is set down in that table as the proportion of the several states. If the power and the principle of the proposed distribution be satisfactory to the senate, I think the objects cannot fail to be equally so. They are education, internal improvements, and colonization, all great and beneficent objects, all national in their nature. No mind can be cultivated and improved; no work of internal improvement can be executed in any part of the union, nor any person of color transported from any of its ports, in which the whole union is not interested. The prosperity of the whole is an aggregate of the prosperity of the parts. The states, each judging for itself, will select among the objects enumerated in the bill, that which comports best with its own policy. There is no compulsion in the choice. Some will prefer, perhaps, to apply the fund to the extinction of debt, now burden- some, created for internal improvement; some to new objects of internal improvement; others to education; and others again to colonization. It may be supposed possible that the states will divert the fund from the specified purposes. But against such a misapplication we have, in the first place, the security which arises out of their presumed good faith; and, in the second, the power to withhold subsequent, if there has been any abuse in previous appropriations. It has been argued that the general government has no poxver in respect to colonization. Waiving that, as not being a question at this time, the real inquiry is, have the states themselves any such power For it is to the states that the subject is referred. The evil of a free black population, is not restricted to particular states, 83 8 SPEECHES OF HENRY CLAY. but extends to and is felt by all. It is not, therefore, the slave question, but totally distinct from and unconnected with it. I have heretofore often expressed my perfect conviction, that the general government has no constitutional power which it can exercise in regard to African slavery. That conviction remains unchanged. The states in which slavery is tolerated, have exclusively in their own hands the entire regulation of the subject. But the slave states differ in opinion as to the expediency of African colonization. Several of them have signified their approbation of it. The legislature of Kentucky, I believe unanimously, recommended the encouragement of colonization to congress. Should a war break out during the term of five years, that the operation of the bill is limited to, the fund is to be withdrawn and applied to the vigorous prosecution of the war. If there be no war, congress, at the end of the term, will be able to ascertain whether the money has been beneficially expended, and to judge of the propriety of continuing the distribution. Three reports have been made, on this great subject of the public lands, during the present session of congress, besides that of the secretary of the treasury at its commencement -two in the senate and one in the house. All three of them agree, first, in the preser- vation of the control of the general government over the public lands; and, secondly, they concur in rejecting the plan of a cession of the public lands to the states in which they are situated, recom- mended by the secretary. The land committee of the senate propose an assignment of fifteen per centum of the net proceeds, besides the five per centum stipulated in the compacts, (making together twenty per centum,) to the new states, and nothing, to the old. The committee of manufactures of the senate, after an allotment of an additional sum of ten per centum to the new states, propose an equal distribution of the residue among all the states, old and new, upon equitable principles. The senate's land committee, besides the proposal of a distribu- tion, restricted to the new states, recommends an immediate reduction of the price of 'fresh lands,' to a minimum of one dollar per acre, and to fifty cents per acre for lands which have been five years or upwards in market. The land committee of the house is opposed to all distribution, general or partial, and recommends a reduction of the price to one dollar per acre. And now, Mr. President, I have a few more words to say, and shall be done. We are admonished by all our reflections, annd by existing signs, of the duty of communicating strength and energy to the glorious union which now encircles our favored country. Among the ties which bind us together, the public domain merits high consideration. And if we appropriate, for a limited time, the 84 ON THE PUBLIC LANDS. 85 proceeds of that great resource, among the several states, for the important objects which have been enumerated, a new and power- fil bond of affection and of interest will be added. The states will feel and recognise the operation of the general government, not merely in power and burdens, but in benefactions and blessings. And the general government in its turn will feel, from the expendi- ture of the money which it dispenses to the states, the benefits of moral and intellectual improvement of the people, of greater facility in social and commercial intercourse, and of the purifica- tion of the population of our country, themselves the best parental sources of national character, national union, and national great- ness. Whatever may be the fate of the particular proposition now under consideration, I sincerely hope that the attention of the nation may be attracted to this most interesting subject; that it may justly appreciate the value of this immense national property; and that, preserving the regulation of it by the will of the whole, for the advantage of the whole, it may be transmitted, as a sacred and inestimable succession, to posterity, for its benefit and blessing for ages to come. I ON THE NORTHEASTERN BOUNDARY OF THE UNITED STATES. IN THE SENATE OF THE UNITED STATES, JULY 10, 1832. [THE disputed question of the northeastern boundary of the United States, between the state of Maine and the British provinces, had been referred, in pursuance of an article of the treaty of Ghent, to the king of the Netherlands, for his opinion as to the true boundary line. That monarch having made his award. recommending the River St. John as the proper boundary line, (with some variations;) president Jackson communicated the decision to the senate, asking their advice thereon, as part of the treaty-making power. The subject being under discussion, (in secret session,) Mr. Clay made the following remarks, in which he shows that the advice asked of the senate was premature on the part of the president, with whom the responsibility should rest, until a treaty respecting the boundary should be concluded. This view of the matter was sustained by the subsequent course of the government, which resulted in the final settlement of this boundary question, concluded in 1842, by lord Ashburton and Mr. Webster, secretary of state, and afterwards confirmed by the senate.] INTENDING to express, in a few words, my sentiments on this subject, I have thought I might as well embrace this occa- sion to do it. The president has called upon the senate for its advice, as to the award of the king of the Netherlands, respecting the northeastern boundary of the United States. This call upon the senate is made, not in its legislative character, but as a component part of the treaty-making power. If the senate, therefore, should give any advice on the matter, it must act in its executive capacity, and according to those rules which govern it when so acting. Among these, is that which requires the concur- rence of two thirds of the senators present. The language of the constitution, taken literally, would perhaps require a participation of the senate in the original formation of all treaties. The words are, 'he, (the president,) shall have power, by and with the advice and consent of the senate, to make treaties; provided two thirds of the senators present concur.' In the early stages of his administration, general Washington endeavored to execute this part of the constitution according to its literal interpre- tation; but he soon found it impracticable, and abandoned it. The ON THE NORTHEASTERN BOUiNDARY. difficulty of consulting so large a body as to the instructions to be given to a foreign minister; the variety of propositions which may be interchanged in the progress of a negotiation, and the inconve- nience of a perpetual recurrence to the senate for its opinion upon each of them, besides other considerations, rendered it altogether inexpedient to take the advice and consent of the senate previously to the conclusion of treaties. When concluded, president Wash- ington thought the purport of the constitution would be satisfied by submitting them to the senate; as they could not be said to be made, in the language of the constitution, until the senate gave its constitutional concurrence to their becoming obligatory national compacts. Accordingly, from an early period, in the first term of his administration, down to the present time, the settled and uniform practice of the executive government has been, to open negotiations with foreign powers, and to conclude such treaties as the president conceives the interests of this country demand. When so concluded, they are submitted to the senate for its constitutional advice and consent. And the extent of any agency which the senate exercises, in the formation of a treaty, is limited to proposing, as was done in the treaty of Mr. Jay, in 1794, amendments to the treaty. These become the subject of future negotiation. To this established practice of the government, the present administration has hitherto, itself, conformed. And I presume it is not intended to change it, and to revive the impracticable course which general Washington w as compelled to abandon, from experience. What, then, are the circumstances of the case which the presi- dent has brought here for the consideration of the senate In virtue of several treaties between the United States and Great Britain, on all of which treaties the senate had regularly acted and given its advice and consent, the disputed northeastern boundary was submitted to the decision of the king of the Netherlands, as the arbitrator between the two contracting parties, to decide the contro- versy. The king has pronounced his judgment, and communi- cated his award to each of the parties. Various questions have been started as to the validity of this instrument. Such as, whether it was intended as a decision binding the parties; whether it does not transcend the authority vested in the king, by the terms of the submission; whether it can be regarded as any thing more than the advice or recommendation of the king as to a suitable boundary, which either party is at liberty to adopt or not, at his discretion. Whatever may be the real character of this royal act, no treaty, in consequence of it, has been concluded between the United Stales and Great Britain, as far as the senate is advised. It stands upon its own isolated ground. The president has asked the senate to advise him whether he shall sanction the award, and the report 87 8 SPEECHES OF HENRY CLAY. of the committee of foreign relations, now before us, recommends that the government of Great Britain be notified of the acquies- cence in it by the government of the United States. Now, Mr. President, it seems to me, that, in the present state of the transaction, there is nothing brought by the president to our consideration, on which the senate, as a part of the treaty-making or executive power, can constitutionally act. There is no treaty presented to us for our advice and consent, not even a negotia- tion proposed, nor, in short, any basis whatever for the action of the senate. If the award of the king of the Netherlands be binding, it derives its validity from the consent of the parties referring the question to him, and from his having decided the case, in conformity with the terms of the submission. If he has not decided it, or if in deciding it he has transcended the terms of the submission, it is not binding and obligatory. The president being the only constitutional organ of the people of the United States, in all communications with foreign powers, and moreover charged with the execution of the laws and treaties of the United States, is bound to notify the British government what are the executive views in relation to the award. If he tells that govern- ment that this does not hold itself bound by the award, a negotia- tion would probably take place between the parties. If, on the contrary, the president notifies the British government that the United States are bound by the award, he would have to come to congress for its legislative aid in carrying into effect the award. And should he so come, the question of the validity of the award would be as open to the examination of congress as it had been to the president. So, if any negotiation which may be opened with Great Britain, in relation to the award, should terminate in the conclusion of a treaty, the president would be bound to submit that treaty to the senate for its constitutional advice and consent. The president not having applied to congress for any act of legislation, and having submitted no treaty or national compact, in any form, to this body, I think there is nothing before us on which we can constitutionally act; and that any advice which, under these circumstances, wve might offer to the president, would have no warrant or authority in the constitution of the United States. I cannot, therefore, consent to vote for the resolution reported by the committee of foreign relations, or to concur in the adoption of any other resolution which would imply the right of the senate to express any opinion on the matter in its present state and condition. Whilst this is my deliberate judgment, I have no hesitation to offer to the president, if he would attach any consequence to them, my views and opinions, as a private citizen, on the whole matter of the northeastern boundary. At Ghent, Great Britain did not assert any right to the territory to which she subsequently set up a f38 ON THE NOR1THEASTERN BOUNDARY. 8 claim. She sought there to obtain by negotiation, and exchange of territory with the United States, a passage w7ilhin her owvn juris- diction from Nova Scotia and Nevw Bruniswick to Quebec. The British commissioners were told by the American, on that occasion, that thev had no power to cede away or exchange any part of the territory of Massachusetts, which then included Maine. As there wrere many parts of the long line of boundary between the Uniied States and Great Britain unsettled and unmarkred, it L'ecame necessary to have it correctly ascertained and defined. For this purpose several boards of commissioners were provided for by the treaty of Ghent, in the same manner as a similar board had been created by a previous treaty. Most of these boards have amicably and satisfactorily settled the questions respeclively submitted to them. That to which was referred the boundary nowV in dispute could not agree. Before this board, Great Britain brought forward and claimed as her right, that -which she had sought to obtain by negotiation only, at the conferences of Ghent. And the persever- ance with which she has prosecuted her pretensions, and the apparent success with which they have been so far finally crowned, demonstrate that there never need be despair in any cause, however bad. During my service in an executive department, it became my duty to examine into this claim asserted by Great Britain; and the result was a firm persuasion and a strong conviction that it wlas unfounded, and that the right to the disputed territory 'vas in the state of Maine. It is true that, in the treaty of peace of 1783, owing to the imperfect knowledge possessed of the country through which the boundary runs, there is some defective description, but the intention of the parties I think is clear, and according to that intention the right is with Maine, and not in Great Britain. It is altogether un necessary, upon this occasion, to proceed to state all the grounds and considerations which brought my mind to that conclusion. By doing so, I should be trespassing upon the senate too much. The commissioners not having been able to settle the question, the casus fivderis, provided for in former treaties, arose, and( it became necessary to suhmit the question to an arbiter. The king of the Netherlands was selected for that puirpose, and we all ]know the subseqnent events. The stateinents, arguments, and papers of the parties, were all prepared within the two countries respectively, and transmitted to Holland, where they were submitted to the king. In consenting to refer the question, tie late adminis- tration was impelled by the duty of respecting the national faith, as pledged in solemn treaties. And although tile king of the Nether- lands, was not the first choice of' either party, high confidence was reposed in his independence, and in his ability, and integrity, by the late president of the United States. VOL. II. 12 89 SPEECHES OF HENRY CLAY. With respect to the conduct of the arbitration, on the part of our government, there are some circumstances I think deeply to be regretted. The plan adopted by the late administration was to have retained Mr. Hughes at the Hague, elevated him to the rank of minister plenipotentiary, and send out Mr. Preble as a public agent to be associated with him. I scarcely know any man so well qualified for such a service as Mr. Hughes. He had the benefit of much diplomatic experience, and he had been very successful in various negotiations which he had conducted. Commencing his career as secretary of the commission at Ghent, he subsequently had creditably represented his government at Stockholm, and at St. Petersburgh, and at Copenhagen, on temporary missions; and he had been some time at the court of the Nether- lands. Wherever he had been, he uniformly made good impres- sions, and conciliated the esteem and friendship of all whose acquaintance he formed. Ile was well versed in the language of the court of the Hague, and well acquainted with all the persons having access to, or surrounding the king. Of pleasing and winning manners, a general favorite, he was exactly such a person as was well fitted for the service. The rank of minister plenipo- tentiary was necessary to entitle him to approach the person of the king, according to established usage. It was a point of more importance that this government should have had such a represent- ative at Holland, as the British government was there represented by an accomplished ambassador, (sir Charles Bagot,) well known here. Mr. Hughes, intimately acquainted with the corps diplo- matique, with all the avenues of access to the king, and with all persons likely to influence the mind or judgment of the monarch or his ministers, would have been able to discover and avert the exercise of any undue influence, if any should be brought to bear upon the government of the Netherlands, in this delicate transaction. It was among the early acts of this administration, to overturn the plan which had been thus resolved on by its predecessors, and, in place of Mr. Hughes, to send out Mr. Preble. in the sole charge of conducting a difficult arbitration. I have had only a limited acquaintance with this gentleman; but he was destitute of all diplomatic experience, had never been in the councils of the general government, and I understand could not either speak or write the language of the court to which he was sent, and where he was a total stranger. lie was indeed a respectable lawyer in his own state, but of what avail would professional eminence be, where tact, insinuating manners, and thorough acquaintance with the persons of the court, were indispensable The result of an arbitration conducted under such auspices was to be feared. During its progress, and before the king's decision, he was stripped, by the revolution in Belgium, of the better half of his dominions. Had he been monarch of Holland alone, I think 90 ON THE NORTHEASTERN BOUNDARY. 1. I hazard nothing in saying, that, notwithstanding the confidence which NMr. Adams reposed in his personal character, he would not have been selected, with the concurrence of the late administration, as the sovereign arbiter. It was to an independent sovereign, one the extent of whose power and dominions placed him at the head of the second-rate states of the continent of Europe, that the contro- versy was submitted. It was not to the king of Holland, but to the king of Holland and Belgium, that the question was referred. It was to a monarch supposed to be unbiased, powerful, and independent, that the question was referred, and not to a sovereign, who, whilst he was arbitrating between Great Britain and the United States as to the territory of Maine, by the uncontrollable force of events found one half of his own dominions the subject of British arbitration or decision, in conjunction with the other allied powers. By the loss of Belgium, the political character of the king was entirely changed, his identity altered, and he ceased to be that monarch, whose friendly arbitration had been solicited. Mr. Preble saw the matter in its true light, and expected to have been notified by the minister of foreign affairs of the king's declining to proceed in the arbitration. But he said nothing, and did nothing, to produce that result. Had Mr. Hughes been there, he would, by a suggestion or a hint, not at all offensive, (such as, whether the critical condition of his own domestic affairs did not afford sufficient occupation for his majesty, without troubling himself with the concerns of foreign governments, in which his own subjects had no interest,) have prevailed on the king to give up the papers; or, at least, to suspend proceeding in the arbitration until he could receive fresh instructions from his own government, adapted to the great event which had happened. But nothing was done at the Hague or at Washington to arrest or suspend the progress of the arbitration. We have neither seen nor heard of any instructions from our secretary of state, founded on the event just mentioned. A senator (now in my eye) informed me, that he had conversed with the late secretary of state about the revolt of Belgium, and asked him, if it would not put a stop to the arbitration. To which the secretary answered, that he supposed of course it would; and yet, as far as we know, he gave no instruction whatever in relation to that event! Under all these circumstances, our surprise at the issue of the arbitration ought to be less than it otherwise would have been. If the king of the Netherlands had definitively decided the questions actually submitted to him, in consequence of the silent acquiescence of our government in the progress of the arbitration, the honor and faith of the nation might have bound us to submit to the decision, however unjust we deem it. But, Mr. President, I cannot concur with the committee of foreign relations, in considering the paper 91 s SPEECHES OF HENRY CLAY. communicated by the king of Holland to the two governments as containing a decision. It seems to me to express only the opinion of that monarch, as to what he thinks might be a suitable boundary, and to operate as a recommendation to the parties to adopt it; but leaving them, at the same time, at full liberty to adopt it or not, at their discretion. So far from being a decision, the king professes his inability to decide the question submitted to him, for reasons which he states, and he does not decide it, according to the terms of the submission. Nor can I concur with that committee in believing, that w're shall be in danger of incurring the reproaches of the world for not submitting to such an award, if award it can be called. I am quite sure, that the chairman of the committee of foreign affairs, or the present secretary of state, would be fully competent to make out an argument in behalf of the rights of Maine, that would fully vindicate them, and vindicate the course of government, from all reproaches, founded o, noncompliance with the advice and recommendation of the sovereign arbiter. Entertaining these sentiments, as a private citizen, I have no hesitation in expressing my opinion that the American government, disregarding and declining to be bound by, the award, ought to open a negotiation with Great Britain on the subject of this disputed boundary. I have no apprehensions that such a step would, necessarily, bring on wvar. Great Britain inight have adopted one of two courses; either to proceed to occupy the territory which the sovereign arbiter thinks it would be suitable for her to possess, and signified her determination to do so; or, to communicate to our government her willingness to be governed by the advice of the arbiter, and inquired as to the intentions, on that subject, of this government. The former .-ourse would have been harsh, and might have involved the two countries in war. The latter was more respectful, and, having been adopted by Great Britain, it will be natural and easy to return an answer to the diplomatic note which has been received, stating the grounds and arguments which induce the American government to believe itself not bound by what has been done by the king of Holland. Such an answer would be preliminary to a negotiation, which would necessarily follow. It is desirable, undoubtedly, to have all controversies between nations settled, and amicably, if possible. But this is not the only question remaining to be decided between the two powers, and if that mutual respect and friendly disposition which, it is to be hoped, may predominate in the official intercourse between the two countries, should prevail, although the dispute, by the intervention of the Dutch king, has been somewhat complicated, we need not, I think, despair finally of some satisfactory arrangement. These are my private views, Mr. President. But I think the president has come to the senate too soon, or come to it in a wrong 92 ON THE NORTHEASTERN BOUNDARY. 93 character. As a part of the executive government, I think the senate has nothing to do with the question, in the present state of it. Holding this opinion, I shall vote against the resolution reported by the committee of foreign affairs, and I shall vote against any other resolution or proposition which may imply or assume a power in the senate of the United States to act in the case. The president, it seems to me, is invested, exclusively, with the power of deciding', in the first instance, whether any and what obligations, if any, have been created upon the American government, in consequence of the act of the king of the Netherlands; and whether it be expedient or not to open a negotiation wvith Great Britain. And I think he should be left to his constitutional responsibility, to pursue such a course as a sense of duty may prompt. ON PRESIDENT JACKSON'S VETO OF THE BILL TO RECHARTER THE UNITED STATES BANK. IN THE SENATE OF THE UNITED STATES, JULY 12, 1832. ITnE charter of the bank of the United States, incorporated in 1816. expired b its limitation, in 1836. An act extending the charter, having passed the senate, by a vote of twenty-eight to twenty, and the house of representatives. by a vote of one hundred and five to eighty-three. was returned to the senate on the tenth of July, 1832, by president Jackson, with his objections at length, against signing the bill, and less than two thirds voting for its passage, it was rejected. On the twelfth, the veto message being under consideration, Mr. Clay delivered his sentiments in the follow- ing words.] I HAVE some observations to submit on this question, which I would not trespass on the senate in offering, but that it has some command of leisure, in consequence of the conference which has been agreed upon, in respect to the tariff A bill to recharter the bank, has recently passed congress, after much deliberation. In this body, we know that there are members enough who entertain no constitutional scruples, to make, with the vote by which the bill was passed, a majority of two thirds. In the house of representatives, also, it is believed, there is a like majority in favor of the bill. Notwithstanding this state of things, the president has rejected the bill, and transmitted to the senate an elaborate message, communicating at large his objections. The constitution requires that we should reconsider the bill. and that the question of its passage, the president's objections notwithstand- ing, shall be taken by ays and noes. Respect to him, as well as the injunctions of the constitution, require that we should deliber- ately examine his reasons, and reconsider the question. The veto is an extraordinary power, which, though tolerated by the constitution, was not expected, by the convention, to be used in ordinary cases. It was designed for instances of precipitate legislation, in unguarded moments. Thus restricted, and it has been thus restricted by all former presidents, it might not be mis- chievous. During Mr. Madison's administration of eight years, there occurred but two or three cases of its exercise. During the VETO OF THE BANK BILL. last administration, I do not now recollect that it was once. In a period little upwards of three years, the present chief magistrate has employed the veto four times. We now hear quite frequently, in the progress of measures through congress, the statement that the president will veto them, urged as an objection to their passage. The veto is hardly reconcilable with the genius of representative government. It is totally irreconcilable with it, if it is to be fre- quently employed in respect to the expediency of measures, as well as their constitutionality. It is a feature of our government, borrowed from a prerogative of the British king. And it is remarkable, that in England it has grown obsolete, not having been used for upwards of a century. At the commencement of the French revolution, in discussing the principles of their consti- tution, in national convention, the veto held a conspicuous figure. The gays laughing population of Paris, bestowed on the king the appellation of monsieur Veto, and on the queen, that of madame Veto. The convention finally decreed, that if a measure rejected by the king, should obtain the sanction of two concurring legisla- tures, it shouid be a law, notwithstanding the veto. In the consti- tution of Kentucky, and perhaps in some other of the state constitutions, it is provided that if; after the rejection of a bill by the governor, it shall be passed by a majority of all the members elected to both houses, it shall become a law, notwithstanding the governor's objections. As a coordinate branch of the government, the chief magistrate has great weight. If, after a respectful consid- eration of his objections urged against a bill, a majority of all the members elected to the legislature, shall still pass it, notwithstand- ing his official influence, and the force of his reasons, ought it not to become a law Ought the opinion of one man to overrule that of a legislative body, twice deliberately expressed It cannot he imagined that the convention contemplated the application of the veto, to a question which has been so long, so often, and so thoroughly scrutinized, as that of the bank of the United States, by every department of the government, in almost every stage of its existence, and by the people, and by the state legislatures. Of all the controverted questions which have sprung up under our government, not one has been so fully investigated as that of its power to establish a bank of the United States. More than seventeen years ago, in January, 1815, Mr. Madison then said, in a message to the senate of the United States: 'Waiving the question of the constitutional authority of the legislature to estab- lish an incorporated bank, as being precluded. in my judgment, by repeated recogni. lions, under varied circumstances. of the validity of such an institution, in acts of the legislative, executive, and judicial branches of the government, accompanied by indications, in different modes, of a concurrence of the general will of the nation.' Mr. Madison, himself opposed to the first bank of the United States, yielded his own convictions to those of the nation, and all 95 96 SPEECHES OF HENRY CLAY. the departments of the government thus often expressed. Subse- quently to this true but strong statement of the case, the present bank of the United States was established, and numerous other acts, of all the departinents of government, manifesting, their settled sensc of the powver, have been added to those which existed prior to the date of Mr. Madison's message. No question has been more generally discussed, within the last two years, by the people at large, and in state legislatures, than that of the ba'2k. And this consideration of it has been prompted by the president himself. In his first message to congress, (in December, 1S29,) he brought the subject to the view of that body and the nation, and expressly declared, that it could not, for the interest of all concerned, be 'too soon' settled. Ill each of his subsequent annual messages, in 1S30 and 1831, he again invited the attention of congress to the subject. Thus, after an interval of two years, and after the intervention of the election of a new congress, the president deliberately renews the chartering of the bank of the United States. And yet his friends now declare the agita- tion of the question to be premature! It was not premature in 1829 to present the question, but it is premature in 1832 to consider and decide it! After the president had directed public attention to this question, it became not only a topic of popular conversation, but was dis- cussed in the press, and employed as a theme in popular elections. I was myself interrogated, on more occasions than one, to make a public expression of my sentiments; and a friend of mine in Ken- tucky, a candidate for the state legislature, told me nearly two years ago, that he was surprised, in an obscure part of his county, (the hills of Benson,) where there was but little occasion for banks, to find himself questioned on the stump, as to the recharter of the bank of the United States. It seemed as if a sort of general order had gone out, from headquarters, to the partisans of the adminis- trition, everv where, to agitate and make the most of the question. They have done so, and their condition now reminds me of ihe fable invented by Dr. Franklin, of the eagle and the cat, to demon- strate that Eso3p had not exhausted invention, in the construction of his memorable fables. The eagle, you know, MIr. President, Jpounced from his lofty flight in the air upon a cat, taking it to be a pig. Having borne off his prize, he quickly felt most painfully the paws of the cat. thrust deeply into his sides and body. Whilst flying he held a parley with the supposed pig, and proposed to let go his hold, if the other would let him alone. No, says puss, vou brought me from yonder earth below, and I will hold fast to you until you carry me back -a condition to wvhich the eagle readily assented. The friends of the president, who have been for nearly three years agitating this question, now turn round upon their opponents, VETO OF THE BANK BIL L. who have supposed the president quite serious and in earnest, in presenting it for public consideration, and charge them with prema- turely agitating it. And that for electioneering purposes! 'T'he other side understands perfectly, the policy of preferring an unjust charge, in order to avoid a well-fouiied accusation. If there be an electioneering molive in the matter, who have been actuated by it Those who have taken the president at his word, and deliberated on a measure which he has repeatedly recommended to their consideration; or those who have resorted to all sorts of means to elude the question-by alternately coax- ing and threatening the bank; by an extraordinary investigation into the administration of the bank; and by every species of post- ponement and procrastination, during the progress of the bill Notwithstanding all these dilatory expedients, a majority of congress, prompted by the will and the best interests of the nation, passed the bill. And I shall now proceed, with great respect and deference, to examine some of the objections to its becoming a law, contained in the president's message, avoiding, as much as I can, a repetition of what gentlemen have said who preceded me. The president thinks that the precedents, drawn from the proceed- ings of congress, as to the constitutional power to establish a bank, are neutralized, by there being two for and two against the author- ity. He supposes that one congress, in 1811, and another in 1815, decided against the power. Let us examine both of these cases. The house of representatives in 1811, passed the bill to recharter the bank, and, consequently, affirmed the powver. The senate, during the same year, were divided, seventeen and seventeen, and the vice-president gave the casting vote. Of the seventeen who voted against the bank, we know from the declaration of the sena- tor from Maryland, (general Smith,) now present, that he entertained no doubt whatever of the constitutional power of congress to establish a bank, and that he voted on totally distinct ground. Taking away his vote and adding it to the seventeen who voted for the bank, the number would have stood eighteen for, and sixteen against the power. But we know further, that Mr. Gaillard, Mr. Anderson, and Mr. Robinson, made a part of that sixteen; and that in 1815. all three of them voted for the bank. Take those three votes from the sixteen, and add them to the eighteen, and ihe vote of 1S11, as to the question of constitutional power, would have been twenty-one and thirteen. And of these thirteen there might have been others still, who were not governed in their votes by any doubts of the power. In regard to the congress of 1815, so far from their having enter- tained any scruples in respect to the power to establish a bank, they actually passed a bank bill, and thereby affirmed the power. It is true that, by the casting vote of the speaker of the house of repre- sentatives, (Mr. Cheves,) they rejected another bank bill, not on VOL. II. 13 97 E SPEECHES O F HENRY CL AY. grounds of want of power, but upon considerations of expediency in the particular structure of that bank. Both the adverse precedents therefore, relied upon in the message, operate directly against the argument which they were brought forward to maintain. Congress, by various other acts, in relation to the bank of the United States, has again and again sanctioned the power. And I believe it may be truly affirmed, that from the commencement of the government to this day, there has not been a congress opposed to the bank of the United States upon the distinct ground of a want of power to establish it. And here, Mr. President, I must request the indulgence of the senate, whilst I express a few words in relation of myself. I voted, in 1811, against the old bank of the United States, and I delivered on that occasion, a speech, in which, among other reasons, I assigned that of its being unconstitutional. My speech has been read to the senate, during the progress of this bill, but the reading of it excited no other regret than that it was read in such a wretched, bungling, mangling manner. During a long public life, (I mention the fact not as claiming any merit for it,) the only great question in which I have ever changed my opinion, is that of the bank of the United States. If the researches of the senator had carried him a little further, he would, by turning over a few more leaves of the same book from which be read my speech, have found that which I made in 1816, in support of the present bank. By the reasons assigned in it for the change of my opinion, I am ready to abide in the judgment of the present generation and of posterity. In 1816, being speaker of the house of representa- tives, it was perfectly in my power to have said nothing and done nothing, and thus have concealed the change of opinion which my mind had undergone. But I did not choose to remain silent and escape responsibility. I chose publicly to avow my actual conver- sion. The war and the fatal experience of its disastrous events, had changed me. Mr. Madison, governor Pleasants, and almost all the public men around me, my political friends, had changed their opinions from the same causes. The power to establish a bank is deduced from that clause of the constitution which confers on congress all powers necessary and proper to carry into effect the enumerated powers. In 1811, I believed a bank of the United States not necessary, and that a safe reliance might be placed on the local banks, in the administration of the fiscal affairs of the government The war taught us many lessons, and among others demonstrated the necessity of the bank of the United States, to the successful operations of the govern- ment. I will not trouble the senate with a perusal of my speech in 1816, but ask its permission to read a few extracts: It is understood to have been read by Mr. luilL 98 VETO OF THE BANK BILL. 99 'But how stood the case in 1810, when he was called upon to examine the powers of the general government to incorporate a national bank A total change of cir- cumstances was presented -events of the utmost magnitude had intervened. I A general suspension of specie payments had taken place, and this had led to a train of circumstances of the most alarming nature. He beheld, dispersed over the immense extent of the United States, about three hundred banking 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 responsi- bility to the state authorities. These institutions were emitting the actual currency of the United States-a currency consisting of paper, on which they neither paid interest nor principal, whilst it was exchanged for the paper of the community, on which both were paid. We saw these institutions, in fact, exercising what had been considered, at all times, and in all countries, one of the highest attributes of sover- eignty-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, deposit or distribution of the public reven ues. 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 accumu- late 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 to 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 had not been suspended, the people were called upon to pay larger contri- butions 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 Ken- tucky paper was worth more than Ohio paper. '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. Clay said he determined to examine the question with as little preju- dice 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. He preferred to the suggestions of the pride of consistency, the evident interests of the community, and determined to throw himself upon their justice and candor.' The interest which foreigners hold in the existing bank of the United States, is dwelt upon in the message as a serious objection to the recharter. But this interest is the result of the assignable nature of the stock; and if the objection be well founded, it applies to government stock, to the stock in local banks, in canal and other companies, created for internal improvements, and every species of money or movables in which foreigners may acquire an interest. The assignable character of the stock is a quality conferred not for the benefit of foreigners, but for that of our own citizens. And the fact of its being transferred to them is the effect of the balance of trade being against us - an evil, if it be one, which the American system will correct. All governments wanting capital, resort to foreign nations possessing it in superabundance, to obtain it. Sometimes the resort is even made by one to another belli- erant nation. Dluring our revolutionary war we obtained foreign capital (Dutch and French) to aid us. During the late War SPEECHES OF HENRY CLAY. American stock was sent to Europe to sell; and if I am not misinformed, to Liverpool. The question does not depend upon the place whence the capital is obtained, but the advantageous use of it. The confidence of foreigners in our stocks, is a proof of the solidity of our credit. Foreigners have no voice in the adminis- tration of this bank; and if they buy its stock, they are obliged to submit to citizens of the United States to manage it. The senator from Tennessee, (Mr. White,) asks what would have been the condition of this country, if, during the late war, this bank had existed, with such an interest in it as foreigners now hold I will tell him. We should have avoided many of the disasters of that war, perhaps those of Detroit and at this place. The government would have possessed ample means for its vigorous prosecution; and the interest of foreigners, British subjects especially, would have operated upon them, not upon us. Will it not be a serious evil to be obliged to remit in specie to foreigners the eight millions which they now have in this bank, instead of retaining that capital within the country to stimulate its industry and enterprise The president assigns in his message a conspicuous place to the alleged injurious operation of the bank on the interests of the western people. They ought to be much indebted to him for his kindness manifested towards them; although, I think, they have much reason to deprecate it. The people of all the west owe to this bank about thirty millions, which have been borrowed from it; and the president thinks that the payments for the interest, arid other facilities which they derive from the operation of the bank, are so onerous as to produce ' a drain of their currency, which no country can bear without inconvenience and occasional distress.' His remedy is to compel them to pay the whole of the debt which they have contracted in a period short of four years. Now, Mr. President, if they cannot pay the interest without distress, how are they to pay the principal If they cannot pay a part, how are they to pay the whole Whether the payment of the interest be or be not a burden to them, is a question for themselves to decide, respecting which they might be disposed to dispense with the kindness of the president. If, instead of borrowing thirty millions from the bank, they had borrowed a like sum from a Girard, John Jacob Astor, or any other banker,. what would they think of one who should come to them and say, -'gentlemen of the west, it will ruin you to pay the interest on that debt, and therefore I will oblige you to pay the whole of the principal in less than four years.' Would they not reply, ' we know what we are about; mind your own business; we are satisfied that in ours we can make not only the interest on what we loan, but a fair profit besides. A great mistake exists about the western operation of the bank. It is not the bank, but the business, the commerce of the west, and the operations of government, that occasion the transfer, annually, of money from the west to the Atlantic states. What is the actual 100 VETO OF THE BANK BILL. course of things The business and commerce of the west are carried on with New Orleans, with the southern and southwestern states and with the Atlantic cities. We transport our dead or inanimate produce to New Orleans, and receive in return checks or drafts of the bank of the United States at a premium of a half per centum. We send by our drovers our live stock to the south and southwest, and receive similar checks in return. With these drafts or checks our merchants proceed to the Atlantic cities, and purchase domestic or foreign goods for western consumption. The lead and fur trade of Missouri and Illinois is also carried on principally through the bank of the United States. The govern- ment also transfers to places where it is wanted, through that bank, the sums accumulated at the different land-offices, for purchases of the public lands. Now all these varied operations must go on; all these remit- tances must be made, bank of the United States or no bank. The bank does not create, but facilitates them. The bank is a mere vehicle; just as much so as the steamboat is the vehicle which transports our produce to the great mart of New Orleans, and not the grower of that produce. It is to confound cause and effect, to attribute to the bank the transfer of money from the west to the east. Annihilate the bank to-morrow, and similar transfers of capital, the same description of pecuniary operations, must be continued; not so well, it is true, but performed they must be, ill or well, under any state of circumstances. The true questions are, how are they now performed how were they conducted prior to the existence of the bank how would they be after it ceased I can tell you what was our condition before the bank was established; and, as I reason from the past to future experience, under analogous circumstances, I can venture to predict what it will probably be without the bank. Before the establishment of the bank of the United States, the exchange business of the west was carried on by a premium, which was generally paid on all remittances to the east of two and a half per centum. The aggregate amount of all remittances, throughout the whole circle of the year, was very great, and instead of the sum then paid, we now pay half per centum, or nothing, if notes of the bank of the United States be used. Prior to the bank, we were without the capital of the thirty millions which that institu- tion now supplies, stimulating our industry and invigorating our enterprise. In Kentucky we have no specie-paying bank, scarcely any currency other than that of paper of the bank of the United States and its branches. How is the west to pay this enormous debt of thirty millions of dollars It is impossible. It cannot be done. General distress, certain, wide-spread, inevitable ruin, must be the consequences of an attempt to enforce the payment. Depression in the value of all property, sheriffs' sales and sacrifices, bankruptcy, must necessarily 101 SPEECHES OF HENRY CLAY. ensue, and, with them, relief laws, paper money, a prostration of the courts of justice, evils from which we have just emerged, must again, with all their train of afflictions, revisit our country. But it is argued by the gentleman from Tennessee, (Mr. White,) that similar predictions were made, without being realized, from the downfall of the old bank of the United States. It is, however, to be recollected, that the old bank did not possess one third of the capital of the present; that it had but one office west of the moun- tains, whilst the present has nine; and that it had little or no debt due to it in that quarter, whilst the present bank has thirty millions. The war, too, which shortly followed the downfall of the old bank, and the suspension of specie payments, which soon followed the war, prevented the injury apprehended from the discontinuance of the old bank. The same gentleman further argues, that the day of payment must come; and he asks when, better than now It is to be indefinitely postponed; is the charter of the present bank to be perpetual Why, Mr. President, all things-governments, repub- lics, empires, laws, human life -doubtless are to have an end; but shall we therefore accelerate their termination The west is now young, wants capital, and its vast resources, needing nourishment, are daily developing. By and by, it will accumulate wealth from its industry and enterprise, and possess its surplus capital. The charter is not made perpetual, because it is wrong to bind posterity perpetually. At the end of the term limited for its renewal, posterity will have the power of determining for itself, whether the bank shall then be wound up, or prolonged another term. And that question may be decided, as it now ought to be, by a consid- eration of the interests of all parts of the union, the west among the rest. Sufficient for the day is the evil thereof. The president tells us, that if the executive had been called upon to furnish the project of a bank, the duty would have been cheerfully performed; and he states that a bank, competent to all the duties which may be required by the government, might be so organized, as not to infringe on our own delegated powers, or the reserved rights of the states. The president is a coordinate branch of the legislative department. As such, bills which have passed both houses of congress, are presented to him for his approval or rejection. The idea of going to the president for the project of a law, is totally new in the practice, and utterly contrary to the theory of the government. What should we think of the senate calling upon the house, or the house upon the senate, for the project of a law In France, the king possessed the initiative of all laws, and none could pass without its having been previously presented to one of the chambers by the crown, through the ministers. Does the president wish to introduce the initiative here Are the powers of recommendation, and that of veto. not sufficient Must all 102 VETO OF THE BANK BILL. legislation, in its commencement and in its termination concentrate in the president When we shall have reached that state of things, the election and annual sessions of congress will be a useless charge upon the people, and the whole business of govern- ment may be economically conducted by ukases and decrees. Congress does sometimes receive the suggestions and opinions of the heads of department, as to newv laws. And, at the com- mencement of this session, in his annual report, the secretary of the treasury stated his reasons at large, not merely in favor of a bank, but in support of the renewal of the charter of the existing bank. Who could have believed that that responsible officer was communicating to congress opinions directly adverse to those entertained by the president himself When before has it happened, that the head of a department recommended the passage of a law which, being accordingly passed and presented to the president, is subjected to his veto What sort of a bank it is, with a project of which the president would have designed to furnish congress, if they had applied to him, he has not stated. In the absence of such statement, we can only conjecture that it is his famous treasury bank, formerly recommended by him, from which the people have recoiled with the instinctive horror, excited by the approach of the cholera. The message states, that ' an investigation unwillingly conceded, and so restricted in time as necessarily to make it incomplete and unsatisfactory, disclose enough to excite suspicion and alarm.' As there is no prospect of the passage of this bill, the president's objections notwithstanding, by a constitutional majority of two thirds, it can never reach the house of representatives. The mem- bers of that house, and especially its distinguished chairman of the committee of ways and means, who reported the bill, are, therefore, cut off from all opportunity of defending themselves. Under these circumstances, allow me to ask how the president has ascertained that the investigation was unwillingly conceded I have understood directly the contrarv; and that the chairman, already referred to, as well as other members in favor of the renaewal of the charter, promptly consented to and voted for the investiga- tion. And we all know that those in support of the renewal could have prevented the investigation, and that they did not. But suspicion and alarm have been excited! SUSPICION AND ALARM! Against whom is this suspicion The house, or the bank, or both Mr. President, I protest against the right of any chief magistrate to come into either house of congress, and scrutinize the motives of its members; to examine whether a measure has been passed with promptitude or repugnance; and to pronounce upon the wil- lingness or unwillingness with which it has been adopted or rejected. It is an interference in concerns which partake of a domestic nature. The official and constitutional relations between 103 SPEECHES OF HENRY CLAY. the president and the two houses of congress subsist with themn as organized bodies. His action is confined to their consummated proceedings, and does not extend to measures in their incipient stages, during their progress through the houses, nor to the motives by which they are actuated. There are some parts of this message that ought to excite deep alarm; and that especially in which the president announces that each public officer may interpret the constitution as he pleases. His language is, ' each public officer, who takes an oath to support the constitution, swears that he will support it as he understands it, and not as it is understood by others.' ' The opinion of the judges has no more au- thority over congress than the opinion of congress has over the judges; and on that point the president is independent of both.' Now, Mr. President, I conceive, with great deference, that the president has mistaken the purport of the oath to support the con- stitulion of the United States. No one swears to support it as he understands it, but to support it simply as it is in truth. All men are bound to obey the laws, of which the constitution is the su- preme; but must they obey them as they are, or as they understand them If the obligation of obedience is limited and controlled by the measure of information; in other words, if the party is bound to obey the constitution only as he understands it; what would be the consequence The judge of an inferior court would disobey the mandate of a superior tribunal, because it was not in conform- ity to the constitution, as he understands it; a custom-house officer would disobey a circular from the treasury department, because contrary to the constitution, as he understands it; an American minister would disregard an instruction from the president, com- municated through the department of state, because not agreeable to the constitution, as he understands it; and a subordinate officer in the army or navy, would violate the orders of his superior, because they were not in accordance with the constitution, as he understands it. We should have nothing settled, nothing stable, nothing fixed. There would be general disorder and confusion throughout every branch of administration, from the highest to the lowest officers-universal nullification. For what is the doctrine of the president but that of South Carolina applied throughout the union The president independent both of congress and the supreme court! only bound to execute the laws of the one and the decisions of the other, as far as they conform to the constitution of the United States, as far as he understands it! Then it should be the duty of every president, on his installation into office, to carefully examine all the acts in the statute book, approved by his predecessors, and mark out those which he was resolved not to ex- ecute, and to which he meant to apply this new species of veto, because they were repugnant to the constitution as he understands it. And, after the expiration of every term of the supreme court, he should send for the record of its decisions, and discriminate 104 VETO OF TH E B AN K B ILL . between those which he would, and those which he would not, execute, because they were or were not agreeable to the constitution, as he understands it. There is another constitutional doctrine contained in the message, which is entirely new to me. It asserts that ' the government of the United States have no constitutional power to purchase lands within the states,' except 'for the erection of forts, magazines, arsenals, dockyards, and other needful buildings;' and even for these objects, only 'by the consent of the legislature of the state in which the same shall be.' Now sir, I had supposed that the right of congress to purchase lands in any state was incontestable; and, in point of fact, it probably at this moment owns land in every state of the union, purchased for taxes, or as a judgment or mort- gage creditor. And there are various acts of congress which regulate the purchase and transfer of such lands. The advisers of the president have confounded the faculty of purchasing lands with the exercise of exclusive jurisdiction, which is restricted by the constitution to the forts and other buildings described. The message presents some striking instances of discrepancy. 'First, it contests the right to establish one bank, and objects to the bill that it limits and restrains the power of congress to establish several. Second, it urges that the bill does not recognise the power of state taxation generally; and complains that facilities are afforded to the exercise of that power in respect to the stock held by individuals. Third, it objects that any bonus is taken, and insists that not enough is demanded. And fourth, it complains that foreigners have too much influence, and that stock transferred loses the privilege of representation in the elections of the bank, which, if it were retained, would give them more. Mr. President, we are about to close one of the longest and most arduous sessions of congress under the present constitution; and when we return among our constituents, what account of the ope- rations of their government shall we be bound to communicate We shall be compelled to say, that the supreme court is paralysed, and the missionaries retained in prison in contempt of its authority, and in defiance of numerous treaties and laws of the United States; that the executive, through the secretary of the treasury, sent to congress a tariff bill which would have destroyed numerous branches of our domestic industry, and to the final destruction of all; that the veto has been applied to the bank of the United States, our only reliance for a sound and uniform currency; that the senate has been violently attacked for the exercise of a clear constitutional power; that the house of representatives have been unnecessarily assailed; and that the president has promulgated a rule of action for those who have laken the oath to support the constitution of the United States, that must, if there be practical conformity to it, introduce general nullification, and end in the absolute subversion of the government. VOL. II. 14 105 ON INTRODUCING THE COMPROMISE TARIFF BILL. IN THE SENATE OF THE UNITED STATES, FEBRUARY 12, 1833. (THNE protective tariff laws of 1524 and 1828 were very unsatisfactory to the poli- ticians of South Carolina, although under the influence of the policy of those laws, that state, in common with the whole union, had enjoyed a high degree of prosperity The principles of the American system of protection and internal improvement had been advocated by Mr. Calhoun and other South Carolina statesmen in 1816, and the tariff then adopted, although protective, was regarded as the settled policy of the country. These gentlemen, however, thought proper subsequently to change their ground, and under their influence combined with that of others who had not changed, the state of South Carolina became agitated and in hostile array to protection to Ameri- can industry. Among other schemes of agitation which grew up at this period, wam the doctrine of nullification, or the right of any state of the union to annul or make void and resist a law of congress, if such state by its legal authorities decided said law to be unconstitutional. Open rebellion to the laws was threatened, and general Jackson, as president, issued a proclamation, declaring his intention to enforce the acts of congress. That body being soon after in session, the friends of Jackson's administration, finding the compulsory measures about being carried out unpopular in the southern states, introduced a new tariff bill, with destructive features in its proposed operation on the great interests of American industry. Under these circum- stances, Mr. Clay projected and brought forward in the senate the measure which was afterwards known as the compromise tariff bill. This act was promptly passed by large majorities in congress, and signed by president Jackson. It had the effect of restoring peace and harmony to the country, and of continuing protection to most branches of domestic industry, for a period of ten years. On this subject, Mr. Clay made the following remarks.] I YESTERDAY, sir, gave notice that I should ask leave to introduce a bill'to modify the various acts imposing duties on imports. I at the same time added, that I should, with the permission of the senate, oflbr an explanation of the principle on which that bill is founded. I owe, sir, an apology to the senate for this course of action, because, although strictly parliamentary, it is, nevertheless, out of the usual practice of this body; but it is a course which I trust that the senate will deem to be justified by the interesting nature of the subject. I rise, sir, on this occasion, actuated by no motives of a private nature, by no personal feelings, and for no personal objects; but exclusively in obedience to a sense of the duty which I owe to my country. I trust, therefore, that no one wvill anticipate on my part any ambitious display of such humble powers as I may possess. It is sincerely my purpose to present a plain, unadorned, and naked statement of facts connected wvith the measure THE COMA PPROMISE TARIFF BILL. which I shall have the honor to propose, and with the condition of the country. When I survey, sir, the whole face of our country, I behold all around me evidences of the most gratifying prosperity, a prospect which would seem to be without a cloud upon it, were it not that through all parts of the country there exist great dissen- sions and unhappy distinctions, which, if they can possibly be relieved and reconciled by any broad scheme of legislation adapted to all interests, and regarding the feelings of all sections, ought to be quieted; and leading to which object any measure ought to be well received. In presenting the modification of the tariff laws, which I am now about to submit, I have two great objects in view. My first object looks to the tariff. I am compelled to express the opinion, formed after the most deliberate reflection, and on full survey of the whole country, that, whether rightfully or wrongfully, the tariff stands in imminent danger. If it should be preserved during this session, it must fall at the next session. By what circumstances, and through what causes, has arisen the necessity for this change in the policy of our country, I will not pretend 1o0w to elucidate. Others there are, who may differ from the impressions which my mind has received upon this point. Owing, however, to a variety of concur- rent causes, the tariff, as it now exists, is in imminent danger, and if the system can be preserved beyond the next session, it must be by some means not pow within the reach of human sagacity. The fall of that policy, sir, would be productive of consequences calam- itous indeed. When I look to the variety of interests which are involved, to the number of individuals interested, the amount of capital invested, the value of the buildings erected, and the whole arrangement of the business for the prosecution of the various branches of the manufacturing art, which have sprung up under the fostering care of this government, I cannot contemplate any evil equal to the sudden overthrow of all those interests. History can produce no parallel to the extent of the mischief which would be produced by such a disaster. The repeal of the edict of Nantes itself was nothing in comparison with it. That condemned to exile and brought to ruin a great number of persons. The most respectable portion of the population of France was condemned to exile and ruin by that measure. But, in my opinion, sir, the sudden repeal of the tariff policy would bring ruin and destruction on the whole people of this country. There is no evil, in my opinion, equal to the consequences which would result from such a catastrophe. What, sir, are the complaints which unhappily divide the people of this great country On the one hand it is said, by those who are opposed to the tariff, that it unjustly taxes a portion of the people, and paralyses their industry; that it is to be a perpetual operation; that there is to be no end to the system; ,which, right 107 SPEECHES OF HENRY CLAY. or wrong, is to be urged to their inevitable ruin. And what is the just complaint, on the other hand, of those who support the tariff It is, that the policy of the government is vascillating and uncertain, and that there is no stability in our legislation. Before one set of books is fairly opened, it becomes necessary to close them, and to open a new set Before a law can be tested by experiment, another is passed. Before the present law has gone into operation; before it is yet nine months old; passed, as it was, under circum- stances of extraordinary deliberation, the fruit of nine months labor; before we know any thing of its experimental effects, and even before it commences its operations; we are required to repeal it. On one side we are urged to repeal a system which is fraught with ruin; on the other side, the check now imposed on enterprise, and the state of alarm in which the public mind has been thrown, renders all prudent men desirous, looking ahead a little way, to adopt a state of things, on the stability of which they may have reason to count. Such is the state of feeling on the one side and on the other. I am anxious to find out some principle of mutual accom- modation, to satisfy, as far as practicable, both parties - to increase the stability of our legislation; and at some distant day -but not too distant, when wve take into view the magnitude of the interests which are involved -to bring down the rate of duties to that revenue standard, for which our opponents have so long contended. The basis on which I wish to found this modification, is one of time; an(l the several parts of the bill to which I am about to call the attention of the senate, are founded on this basis. I propose to give protection to our manufactured articles, adequate protection for a length of time, which, compared with the length of human life, is very long, but which is short, in proportion to the legitimate discretion of every wise and parental system of government; securing the stability of legislation, and allowing time for a gradual .reduction, on one side; and, on the other, proposing to reduce the duties to that revenue standard, for which the opponents of the system have so long contended. I will now proceed to lay the provisions of the bill before the senate, with a view to draw their attention to the true character of the bill. [Mr. Clay then proceeded to read the first section of the bill.] According to this section, it will be perceived that it is proposed to come down to the revenue standard at the end of little more than nine years and a half, giving a protection to our own manufactures which I hope will be adequate, during the intermediate time. rMr. Clay here recapitulated the provisions of the sections, and showed by various illustrations how they would operate; and then proceeded to read and comment upon the second section of the bill.] 108 THE COMPROMISE TARIFF BILL. It will be recollected, that at the last session of congress, with a view to make a concession to the southern section of the country, low-priced woollens, those supposed to enter into the consumption of slaves and the poorer classes of persons, were taken out of the general clvss of duties on woollens, and the duty on them reduced to five per centum. It will be also recollected, that at that time the gentlemen from the south said that this concession was of no consequence, and that they did not care for it, and I believe that thev do not Dow consider it of any greater importance. As, therefore, it has failed of the purpose for which it was taken out of the common class, I think it ought to be brought back again, and placed by the side of the other description of woollens, and made subject to the same reduction of duty as proposed by this section. [Having next read through the third section of the bill, Mr. Clay said:] After the expiration of a term of years, this section lays down a rule by which the duties are to be reduced to the revenue standard, which has been so long and so earnestly contended for. Until otherwise directed, and in default of provision being made for the wvants of the government in 1S42, a rule is thus provided for the rate of duities thereafter, congress being, in the meantime, authorized to adopt any other rule which the exigences of the country, or its financial condition, may require. That is to say, if, instead of the duty of twenty per centum proposed, fifteen or seventeen per centumn of duty is sufficient, or twenty-five per centum should be found necessary, to produce a revenue to defray the expenses of an economical administration of the government, there is nothing to prevent either of those rates, or any other, from being fixed upon; whilst the rate of twenty per centum is introduced to guard against any failure on the part of congress to make the requisite provision in due season. This section of the bill contains also another clause, suggested by that spirit of harmony and conciliation which I pray may preside over the councils of the union at this trying moment. It provides (what those persons who are engaged in manufactures have so long anxiously required for their security) that duties shall be paid in ready money; and we shall thus get rid of the whole of that credit system, into which an inroad wvas made, in regard to wool- lens, by the act of the last session. This section further contains a proviso that nothing in any part of this act shall be construed to interfere with the freest exercise of the power of congress to lay any amount of duties, in the event of war breaking out between this country and any foreign power. [Mr Clay then read the fourth section of the bill.] One of the considerations strongly urging for a reduction of the 109 SPEECHES OF HENRY CLAY. tariff at this time is, that the government is likely to be placed in a dilemnma by having an overflowing revenue; and this apprehen- sion is the ground of an attempt totally to change the protective policy of the country. The section which I have read is an effort to guard against this evil, by relieving altogether from duty a por- tion of the articles of import now subject to it. Some of these would, under the present rate of duty upon them, produce a considerable revenue; the article of silks alone would yield half a million of dollars per annum. If it were possible to pacify pres- ent dissensions, and let things take their course, I believe that no difficulty need he apprehended. If the bill which this body passed at the last session of congress, and has again passed at this session, shall pass the other house, and become a law, and the gradual reduction of duties should take place which is contem- plated by the first section of this bill, we shall have settled two (if not three) of the great questions which have agitated this country, that of the tariff, of the public lands, and, I will add, of internal improvement also. For, if there should still be a surplus revenue, that surplus might be applied, until the year 1842, to the comple- tion of the works of internal improvement already commenced; and, after 1842, a reliance for all funds for purposes of internal improvement should be placed upon the operation of the land bill, to which I have already referred. It is not my object in referring to that measure in connection with that which I am about to propose, to consider them as united in their fate, being desirous, partial as I may be to both, that each shall stand or fall upon its own intrinsic merits. If this section of the bill, adding to the number of free articles, should become law, along with the reduction of duties proposed by the first section of the bill, it is by no means sure that we shall have any surplus revenue at all. I have been astonished indeed at the process of reasoning by which the secretary of the treasury has arrived al the conclusion, that we shall have a surplus revenue at all, though I admit that such a conclusion can be arrived at in no other way. But what is this process Duties of a certain rate now exist. The amount which they produce is known; the secretary, propos- ing a reduction of the rate of duty, supposes that the duties will be reduced in proportion to the amount of the reduction of duty. Now no calculation can be more uncertain than that. Though perhaps the best that the secretary could have made, it is still all uncertainty; dependent upon the winds and waves, on the muta- tions of trade, and on the course of commercial operations. If there is any truth in political economy, it cannot be that result will agree with the prediction; for we are instructed by all expe- rience that the consumption of any article is in proportion to the reduction of its price, and that in general it may be taken as a rule, that the duty upon ahi article forms a portion of its price. I do not 110 THE COMAli 1OISE TARIFF BI LL. mean to impute any improper design to any one; but, if it had been so intended, no scheme for getting rid of the tariff could have been more artfully devised to effect its purposes, than that which thus calculated the revenue, and, in addition, assumed that the expenditure of the government every year would be so much, and so forth. Can any one here say what the future expenditure of the government will be In this young, great, and growing community, can we say what will be the expenditure of the govern- ment even a year hence, much less what it will be three, or four, or five years hence Yet it has been estimated, on assumed amounts, founded on such uncertain data, both of income and expenditure, that the revenue might be reduced so many millions a year! I ask pardon for this digression, and return to the examination of articles in the fourth section, which are proposed to be left free of duty. The duties on these articles now vary from five to ten per centum ad valorem; but low as they are, the aggregate amount of revenue which they produce is considerable. By the bill of the last session, the duties on French silks was fixed at five per centum, and that on Chinese silks at ten per centum ad valorem. By the bill now proposed, the duty on French silks is proposed to be repealed, leaving the other untouched. I will frankly state why I made this distinction. It has been a subject of anxious desire with me to see our commerce with France increased. France, though not so large a customer in the great staples of our country as Great Britain, is a great growing customer. I have been much struck with a fact going to prove this, which accidentally came to my knowledge the other day; which is, that within the short period of fourteen years, the amount of consump- tion in France of the great southern staple of cotton has been tripled. Again, it is understood that the French silks of the lower grades of quality cannot sustain a competition with the Chinese without some discrimination of this sort. I have understood, also, that the duty imposed upon this article at the last session has been very much complained of on the part of France; and, considering all the circumstances connected with the relations between the two governments, it appears to me to be desirable to make this discrim- ination in favor of the French product. If the senate should think differently, I shall be content. If, indeed, they should think proper to strike out this section altogether, I shall cheerfully submit to their decision. [After reading the fifth and sixth sections, Mr. Clay said:] I will now take a few of some of the objections which will be made to the bill. It may be said that the act is prospective, that it binds our successors, and that we have no power thus to bind them. It is true that the act is prospective, and so is almost every act which we ever passed, but we can repeal it the next day. It ill SPEECHES OF HENRY CLAY. is the established usage to give all acts a prospective operation. In every tariff there are some provisions which go into operation immediately, and others at a future time. Each congress legislate according to their own views of propriety; their act does not bind their successors, but creates a species of public faith, which wvill not rashly be broken. But if this bill shall go into operation, as I hope, even against hope, that it may, I doubt not that it will be adhered to by all parties. There is but one contingency which will render a change necessary, and that is the intervention of a war, which is provided for in the bill. The hands of congress are left untied in this event, and they will be at liberty to resort to any mode of taxation, which thev may propose. But if we suppose peace to continue, there will be no motive for disturbing the arrange- ment, but on the contrary, every motive to carry it into effect. In the next place, it will be objected to the bill, by the friends of the protective policy, of whom I hold myself to be one, for my mind is immutably fixed in favor of that policy, that it abandons the power of protection. But I contend, in the first place, that a suspension of the exercise of the power is not an abandonment of it; for the power is in the constitution according to our theory, was put there by its framers, and can only be dislodged by the people. After the year 1S42, the bill provides that the power shall be exercised in a certain mode. There are four modes by which the industry of the country can be protected. First, the absolute prohibition of rival foreign articles that are totally unattempted by the bill; but it is competent to the wisdom of the government to exert the power whenever they wish. Second, the imposition of duties in such a manner as to have no reference to anv object but revenue. When we had a large public debt in 1816, the duties yielded thirty-seven millions, and paid so much more of the debt, and subsequently they yielded but eight or ten millions, and paid so much less of the debt. Sometimes we have to trench on the sinking fund. Now we have no public debt to absorb the surplus revenue, and no motive for continuing the duties. No man can look at the condition of the country, and say that we can carry on this system with accumulating revenue, and no practical way of expending it. The third mode was attempted last session, in a resolution which I had the honor to submit last year, and which in fact ultimately formed the basis of the act which finally passed both houses. This wvas to raise as much revenue as was wanted for the use of the government, and no more, but to raise it from the protected and not from the unprotected articles. I will say, that I regret most deeply that the greater part of the country will not suffer this principle to prevail. It ought to prevail; and the day, in my opinion, will come, when it will be adopted as the permanent policy of the country. Shall we legislate for our ovwn wants or that of a foreign country To protect our own 112 THE COMPROMrSE TrARIFF BILL. 113 interests in opposition to foreign legislation was the basis of this system. The fourth mode in which protection can be aflorde d to domestic industry, is to admit free of duty every article which aided the operations of the manufacturers. These are the four modes for protecting our industry; and to those who say that the bill aban- dons the power of protection, I reply, that it does not touch that power; and that the fourth mode, so far from being abandoned, is extended and upheld by the bill. The most that can be objected to the bill by those with whom I cooperate to support the protective system, is, that, in consideration of nine and a half years of peace, certainty, and stability, the manufacturers relinquished some advan- tages which they now enjoy. What is the principle which has always been contended for in this and in the other house After the accumulation of capital and skill, the manufacturers will stand alone, unaided by the government, in competition with the imported articles from any quarter. Now give us time; cease all fluctuations and agitations, for nine years, and the manufacturers in every branch will sustain themselves against foreign competition. If we can see our way clearly for nine years to come, we can safely leave to posterity to provide for the rest. If the tariff be overthrown, as may be its fate next session, the country will be plunged into extreme distress and agitation. I want harmony. I wish to see the restoration of those ties which have carried us triumphantly through two wars. I delight not in this perpetual turmoil. Let us have peace, and become once more united as a band of brothers. It may be said that the farming interest cannot subsist under a twenty per centurn ad valorem duty. My reply is, ' sufficient for the day is the evil thereof.' I will leave it to the day when the reduction takes effect, to settle the question. When the reduction takes place, and the farmer cannot live under it, what will he do I will tell you what he ought to do. He ought to try it-make a fair experiment of it-and if he cannot live under it, let him come here and say that he is bankrupt and ruined. If then nothing can be done to relieve him, sir, I will not pronounce the words, for I will believe that something will be done, and that relief will be afforded, without hazarding the peace and integrity of the union. The confederacy is an excellent contrivance, but it must be managed with delicacy and skill. There are an infinite variety of prejudices and local interests to be regarded, but all should be made to yield to the union. If the system proposed cannot be continued, let us try some intermediate system, before we think of any other dreadful alter- native. Sir, it will be said, on the other hand -for the objections are made by the friends of protection, principally - that the time is too long; that the intermediate reductions are too inconsiderable, and that there is no guarantee that, at the end of the time stipu- lated, the reduction proposed would be allowed to take effect. In VOL. 11. 15 113 SPEECHES OF HENRY CLAY, the first place should be recollected the diversified interests of the country; the measures of the government which preceded the establishment of manufactures; the public faith in some degree pledged for their security; and the ruin in which rash and hasty legislation would involve them. I will not dispute about terms. It would not, in a court of justice, be maintained that the public faith is pledged for the protection of manufactures; but there are other pledges which men of honor are bound by, besides those of which the law can take cognizance. If we excite, in our neighbor, a reasonable expectation which induces him to take a particular course of business, we are in honor bound to redeem the pledge thus tacitly given. Can any man doubt that a large portion of our citizens believed that the system would be permanent The whole country expected it. The security against any change of the system proposed by the bill, is in the character of the bill, as a compromise between two conflicting parties. If the bill should be taken by common consent, as we hope it will be, the history of the revenue will be a guar- antee of its permanence. The circumstances under which it was passed will be known and recorded; and no one will disturb a system which was adopted with a view to give peace and tran- quillity to the country. The descending gradations by which I propose to arrive at the minimum of duties, must be gradual. I never would consent to any precipitate operation to bring distress and ruin on the comnmu- nity. Now, viewing it in this light, it appears that there are eight years and a half, and nine years and a half, taking the ultimate time, which would be an efficient protection, the remaining duties will be withdrawn by a biennial reduction. The protective principle must be said to be, in some measure, relinquished at the end of eight years and a half. This period cannot appear unreasonable, and I think that no member of the senate, or any portion of the country, ought to make the slightest objection. It now remains for me to consider the other ob jection - the want of guarantee to there being an ulterior continuance of the duties imposed by the bill, on the expiration of the term which it prescribes. The best guarantee will be found in the circumstances under which the measure would be passed. If it passes by common consent; if it is passed with the assent of a portion - a considerable portion of those who have directly hitherto supported this system, and by a considerable portion of those who opposed it -if they declare their satisfaction with the measure, I have no doubt the rate of duties guarantied, will be continued after the expiration of the term, if the country continues at peace. And, at the end of the term, when the exper- iment will have been made of the efficiency of the mode of protec- tion fixed by the bill, while the constitutional question has been 114 THE COMPROMISE TARIFF BILL. suffered to lie dormant, if war should render it necessary, protection might be carried up to prohibition; while if the country should remain at peace, and this measure go into full operation, the duties will be gradually lowered down to the revenue standard, which has been so earnestly wished for. But suppose that I am wrong in all these views, for there are no guarantees, in one sense of the term, of human infallibility. Suppose a different stalte of things in the south; that this senate, from causes which I shall not dwell upon now, but which are obvious to every reflecting man in this country-causes which have operated for years past, and which continue to operate-suppose, for a moment, that there should be a majority in the senate in favor of the southern views, and that they should repeal the whole system at once, what guarantee would we have that the repealing of the law would not destroy those great interests which it is so important to preserve What guarantee will you have that the thunders of those powerful manufactures will not be directed against your capitol, because of this abandonment of their interests, and because you have given them no protection against foreign legislation. Sir, if you carry your measure of repeal without the consent, at least, of a portion of those who are interested in the preservation of manufactures, you have no security, no guarantee, no certainty, that any protection will be continued. But if the measure should be carried by the common consent of both parties, we shall have all security; history will faithfully record the transaction; narrate under what circumstances the bill was passed; that it was a pacifying measure; that it was as oil poured from the vessel of the union to restore peace and harmony to the country. When all this was known, what congress, what legislature, would mar the guarantee What man who is entitled to deserve the character of an American statesman, would stand up in his place in either house of congress, and disturb this treaty of peace and amity Sir, I will not say that it may not be disturbed. All that I say is, that here is all the reasonable security that can be desired by those on the one side of the question, and much more than those on the other would have by any unfortunate concurrence of circum- stances. Such a repeal of the whole system should be brought about as would be cheerfully acquiesced in by all parties in this country. All parties may find in this measure some reasons for objection. And what human measure is there which is free from objectionable qualities It has been remarked, and justly remarked, by the great father of our country himself, that if that great work which is the charter of our liberties, and under which we have so long flourished, had been submitted, article by article, to all the different states composing this union, that the whole would have been rejected; and yet when the whole was presented together, it was accepted as a whole. I will admit that my friends do not get 115 E SPEECHES OF HENRY CLAY. all they could wish for; and the gentlemen on the other side do not obtain all they might desire; but both will gain all that in my bumble opinion is proper to be given in the present condition of this country. It may be true that there will be loss and gain in this measure. But how is this loss and gain distributed Among our countrymen. What we lose, no foreign land gains; and what we gain, will be no loss to any foreign power. It is among ourselves the distribution takes place. The distribution is founded on that great principle of compromise and concession which lies at the bottom of our institutions, which gave birth to the constitution itself, and which has continued to regulate us in our onward march, and conducted the nation to glory and renown. It remains for me now to touch another topic. Objections have been made to all legislation at this session of congress, resulting from the attitude of one of the states of this confederacy. I confess that I felt a very strong repugnance to any legislation at all on this subject at the commencement of the session, principally because I misconceived the purposes, as I have found from subsequent observation, which that state has in view. Under the influence of more accurate information, I must say that the aspect of things since the commencement of the session has, in my opinion, greatly changed. When I came to take my seat on this floor, I had supposed that a member of this union had taken an attitude of defiance and hostility against the authority of the general govern- ment. I had imagined that she had arrogantly required that we should abandon at once a system which had long been the settled policy of this country. Supposing that she had manifested this feeling, and taken up this position, 1 had, in consequence, felt a dis- position to hurl defiance back again, and to impress upon her the necessity of the performance of her duties as a member of this union. But since my arrival here, I find that South Carolina does not contemplate force, for it is denied and denounced by that state. She disclaims it; and asserts that she is merely making an exper- iment. That experiment is this: by a course of state legislation, and by a change in her fundamental laws, she is endeavoring by her civil tribunals to prevent the general government from carrying the laws of theUnited States into operation within her limits. That she has professed to be her object. Her appeal is not to arms, but to another powver; not to the sword, but to the law. I must say, and I wrill say it with no intention of disparaging that state, or any other of the states, it is a feeling unworthy of her. As the purpo Me of South Carolina is not that of force, this at once disarms, divests legislation of one principal objection, which it appears to me existed against it at the commencement of this session. Her pur- poses are all of a civil nature. She thinks she can oust the United States from her limits; and unquestionably she has taken good care to prepare her judges beforehand by swearing them to decide 116 THE COMPROMISE TARIFF BILL. in her favor. If we submitted to her, we should thus stand but a poor chance of obtaining justice. She disclaims any intention of resorting to force unless we should find it indispensable to execute the laws of the union by applying force to her. It seems to me the aspect of the attitude of South Carolina has changed; or rather, the new light which I have obtained, enables me to see her in a different attitude; and I have not truly understood her until she passed her laws, by which it was intended to carry her ordinance into effect. Now, I venture to predict that the state to which I have referred must ultimately fail in her attempt. I disclaim any inten- tion of saying anything to the disparagement of that state. Far from it. I think that she has been rash, intemperate, and greatly in error; and, to use the language of one of her own writers, made up an issue unworthy of her. From one end to the other of this continent, by acclamation, as it were, nullification has been put down, and put down in a manner more effectually than by a thou- sand wars or a thousand armies -by the irresistible force, by the mighty influence of public opinion. Not a voice beyond the single stale of South Carolina has been heard in favor of the principle of nullificafion,which she has asserted by herown ordinance; and I will say, that she must fail in her lawsuit. I will express two opinions; the first of which is, that it is not possible for the ingenuity of man to devise a system of state legislation to defeat the execution of the laws of the United States, which cannot be countervailed by federal legislation. A state might take it upon herself to throw obstructions in the way of the execution of the laws of the federal government; but federal legislation can follow at her heel quickly, and successfully coun- teract the course of state legislation. The framers of the consti- tution foresaw this, and the constitution has guarded against it. What has it said It is declared, in the clause enumerating the powers of this government, that congress shall have all power to carry into effect all the powers granted by the constitution, in any branch of the government under the sweeping clause; for they have not specified contingencies, because they could not see what was to happen; but whatever powers were necessary, all, all are given to this government by the fundamental law, necessary to carry into effect those powers which are vested by that constitution in the federal government. That is one reason. The other is, that it is not possible for any state, provided this government is admin- istered with prudence and propriety, so to shape its laws as to throw upon the general government the responsibility of first resorting to the employment of force; but, if force at all is employed, it must be by state legislation, and not federal legislation; and the respon- sibility of employing that force must rest with, and attach to, the stale itself. I shall not go into the details of this bill. I merely throw out 117 8 SPEECHES OF HENRY CLAY. these sentiments for the purpose of showing you, that South Carolina, having declared her purpose to be this, to make an experiment whether, by a course of legislation, in a conventional form, or a legislative form of enactment, she can defeat the execu- tion of certain lawvs of the United States, I for one, will express my opinion, that I believe it is utterly impracticable, whatever course of legislation she may choose to adopt, for her to succeed- I am ready, for one, to give the tribunals and the executive of the country, whether that executive has or has not my confidence, the necessary measures of power and authority to execute the laws of the union. But I would not go a hair's breadth further than what was necessary for those purposes. Up to that point I would go, and cheerfully go; for it is my sworn duty, as I regard it, to go to that point. Again; taking this view of the subject, South Carolina is doing nothing more, except that she is doing it with more rashness, than some other states have done-that respectable state, Ohio, and, if I am not mistaken, the state of Virginia also. An opinion pre- vailed some years ago, that if you put the laws of a state into a penal form, you could oust federal jurisdiction out of the limits of that state, because the state tribunals had an exclusive jurisdiction over penalties and crimes, and it was inferred that no federal court could wrest the authority from them. According to that principle, the state of Ohio passed the laws taxing the branch of the United States bank, and high penalties were to be enforced against every person who should attempt to defeat her taxation. The question was tried. It happened to be my lot to be counsel at law to bring the suit against the state, and to maintain the federal authority. The trial took place in the state of Ohio; and it is one of the many circumstances which redounds to the honor of that patriotic state, that she submitted to the federal force. I went to the office of the public treasury myself, to which was taken the money of the bank of the United States, it having remained there in sequestration until it was peaceably rendered, in obedience to the decision of the court, without any appeal to arms. In a building which I had to pass in order to reach the treasury, I saw the most brilliant display of arms and musketry that I ever saw in my life; but not one was raised, or threatened to be raised, against the due execution of the laws of the United States, when they were then enforced. In Virginia, (but I am not sure that I am correct in the history of it,) there was a case of this kind. Persons were liable to penalties for selling lottery tickets. It was contended that the state tribunals had an exclusive jurisdiction over the subject. The case was brought before the supreme court; the parties were a Mr. Myers and somebody else, and it decided, as it must always decide, no matter what obstruction, no matter what the state law may be, the constitutional laws of the United States must follow and defeat it. 118 THE COMPROMISE TARIFF BILL. in its attempt to arrest the federal arm in the exercise of its lawful authority. South Carolina has attempted, and, I repeat it, in a much more offensive way attempted, to defeat the execution of the laws of the United States. But it seems, that, under all the circum- stances of the case, she has, for the present, determined to stop here, in order that, by our legislation, we may prevent the necessity of her advancing any further. But there are other reasons for the expediency of legislation at this time. Although I came here impressed with a different opinion, my mind has now become reconciled. The memorable first of February is past. I confess I did feel an unconquerable repugnance to legislation until that day should have passed, because of the consequences that were to ensue. I hoped that the day would go over well. I feel, and I think that we must all confess, we breathe a freer air than when the restraint was upon us. But this is not the only consideration. South Carolina has practically postponed her ordinance, instead of letting it go into effect, till the fourth of March. Nobody who has noticed the course of events, can doubt that she will postpone it by still further legislation, if congress should rise without any settlement of this question. I was going to say, my life on it, she will post- pone it to a period subsequent to the fourth of March. It is in the natural course of events. South Carolina must perceive the embarrassments of her situation. She must be desirous-it is unnatural to suppose that she is not-to remain in the union. What! a state whose heroes in its gallant ancestry fought so many glorious battles along with those of the other states of this union - a state with which this confederacy is linked by bonds of such a powerful character! I have sometimes fancied what would be her condition if she goes out of this union; if her five hundred thousand people should at once be thrown upon their own resources. She is out of the union. What is the consequence She is an independent power. What then does she do She must have armies and fleets, and an expensive government; have foreign missions; she must raise taxes; enact this very tariff, which has driven her out of the union, in order to enable her to raise money, and to sustain the attitude of an independent power. If she should have no force, no navy to protect her, she would be exposed to piratical incursions. Their neighbor, St. Domingo, might pour down a horde of pirates on her borders, and desolate her planta- tions. She must have her embassies; therefore must she have a revenue. And, let me tell you, there is another consequence, an inevitable one; she has a certain description of persons recognised as property south of the Potomac, and west of the Mississippi, which would be no longer recognised as such, except within their own limits. This species of property would sink to one half of its present value, for it is Louisiana and the southwestern states which are her great market. 119 S PEECHES OF HENRY CLAY. But I will not dwell on this topic any longer. I say it is utterly impossible that South Carolina ever desired, for a moment, to become a separate and independent state. If the existence of the ordinance, while an act of congress is pending, is to be considered as a motive for not passing that law, why, this would be found to be a sufficient reason for preventing the passing of any laws. South Carolina, by keeping the shadow of an ordinance even before us, as she has it in her power to postpone it from time to time, would defeat our legislation for ever. I would repeat, that under all the circumstances of the case, the condition of Souli Carolina is only one of the elements of a combination, the whole of which, together, constitutes a motive of action which renders it expedient to resort, during the present session of congress, to some measure in order to quiet and tranquillize the country. If there be any who want civil war, who want to see the blood of any portion of our countrymen spilt, I am not one of them. I wish to see war of no kind; but, above all, I do not desire to see a civil war. When war begins, whether civil or foreign, no human sight is competent to foresee when, or how, or where it is to terminate. But when a civil war shall be lighted up in the bosom of our own happy land, and armies are marching, and commanders are winning their victories, and fleets are in motion on our coast, tell me, if you can, tell me, if any human being can tell, its duration. God alone knows where such a war would end. In what a state will our institutions be left In what state our liberties I want no war; above all, no war at home. Sir, I repeat, that I think South Carolina has been rash, intem- perate, and greatly in the wrong; but I do not want to disgrace her, nor any other member of this union. No: I da tot desire to see the lustre of one single star dimmed of that glorious confed- eracy which constitutes our political sun; still less do I wish to see it blotted out, and its light obliterated for ever. Has not the state of South Carolina been one of the members of this union in 'days that tried men's souls' Have not her ancestors fought along side our ancestors Have we not, conjointly, won together many a glorious battle If we had to go into a civil war with such a state, how would it terminate Whenever it should have terminated, what would be her condition If she should ever return to the union, what would be the condition of her feelings and affections what the state of the heart of her people She has been with us before, when her ancestors mingled in the throng of battle, and as I hope our posterity will mingle with hers, for ages and centuries to come, in the united defence of liberty, and for the honor and glory of the union; I do not wish to see her degraded or defaced as a member of this confederacy. In conclusion, allow me to entreat and implore each individual 120 THE COMPROMISE TARIFF BILL. member of this body to bring into the consideration of this measure, which I have had the honor of proposing, the same love of country which, if I know myself, has actuated me, and the samne desire of restoring harmony to the union, which has prompted this eflort. If we can forget for a moment-but that would be asking too much of human nature -if we could suffer, for one moment, party feelings an(l party causes-and, as I stand here before my God, f declare I have looked bevond those considerations, and regarded only the vast interests of this united people -I should hope, that ]nuder such feelings, and with such dispositions, we may advan- tageously proceed to the consideration of this bill, and heal, before they are yet bleeding, the wounids of our distracted country. VOL. II. 121 16 IN SUPPORT OF THE COMPROMISE TARIFF ACT. IN THE SENATE OF THE UNITED STATES, FEBRUARY 25, 1833. [ THE compromise tariff bill introduced by Mr. Clay, and supported by him in the foregoing speech of the twelfth of February, although favorably received by a majority, encountered considerable opposition from various motives. Mr. Forsyth, of Georgia, and others, met the proposition with sarcastic remarks, while Mr. Web- ster, and other northern senators, objected to it as surrendering too much of the protective system. To these objections Mr. Clay replied as follows. The bill finally passed the house of representatives (to obviate doubts as to its being a revenue bill) on the twenty-sixth of February, by a vote of one hundred and twenty to eighty- four, and the senate on the first of March, by twenty-nine to sixteen. I BEING anxious, Mr. President, that this bill should pass, and pass this day, I will abridge as much as I can, the observations I am called upon to make. I have long, with pleasure and pride, cooperated in the public service with the senator from Massachu- setts; and I have found him faithful, enlightened, and patriotic. I have not a particle of doubt as to the pure and elevated motives which actuate him. Under these circumstances, it gives me deep and lasting regret, to find myself compelled to differ from him as to a measure involving vital interests, and perhaps the safety of the union. On the other hand, I derive great consolation from finding myself on this occasion, in the midst of friends with whom I have long acted, in peace and in war, and especially with the honorable senator from Maine, (Mr. Holmes,) with whom I had the happiness to unite in a memorable instance. It was in this very chamber, that senator presiding in the committee of the senate, and I in committee of twenty-four of the house of representatives, on a Sabbath day, that the terms were adjusted, by which the compromise of the Missouri question was effected. Then the dark clouds that hung over our beloved country were dispersed and now the thunders from others not less threatening, and which have been longer accumulating, will, I hope, roll over us harmless and without injury. The senator from Massachusetts objects to the bill under consideration, on various grounds. He argues, that it imposes unjustifiable restraints on the power of future legislation; that it abandons the protective policy, and that the details of the bill are THE COMPROMISE TARIFF ACT. practically defective. He does not object to the gradual, but very, inconsiderable, reduction of duties which is made prior to 1842. To that he could not object, because it is a species of prospective provision, as he admits, in conformity with numerous precedents on our statute-book. He does not object so much to the state of the proposed law prior to 1842, during a period of nine years; but throwing himself forward to the termination of that period, he contends that congress will then find itself under inconvenient shackles, imposed by our indiscretion. In the first place, I would remark, that the bill contains no obligatory pledges; it could make none; none are attempted. The power over the subject is in the constitution; put there by those who formed it, and liable to be taken out only by an amendment of the instrument. The next congress, and every succeeding congress, will undoubtedly have the power to repeal the law whenever they may think proper. Whether they will exercise it or not, will depend upon a sound discretion, applied to the state of the whole country, and estimating fairly the consequences of the repeal, both upon the general harmony and the common interests. Then the bill is founded in a spirit of compromise. Now, in all compromises there must be mutual concessions. The friends of free trade insist, that duties should be laid in reference to revenue alone. The friends of American industry say, that another, if not paramount object in laying them, should be, to diminish the consumption of foreign and increase that of domestic products. On this point the parties divide, and between these two opposite opinions a reconciliation is to be effected, if it can be accomplished. The bill assumes as a basis adequate protection for nine years, and less beyond that term. The friends of protection say to their opponents, we are willing to talke a lease of nine years, with the long chapter of accidents beyond that period, including the chance of wvar, the restoration of concord, and along with it, a conviction common to all, of the utility of protection ; and in consideration of it, if, in 1842, none of these contingences shall have been realized, we are willing to submit as long as congress may think proper, to a maximum rate of twenty per centum, with the power of discrimination below it, cash duties, home valuations, and a liberal list of free articles, for the benefit of the manufacturing interest. To these conditions the opponents of protection are ready to accede. The measure is what it professes to be, a compromise; but it imposes and could impose no restriction upon the will or power of a future congress. Doubtless great respect will be paid, as it ought to be paid, to the serious condition of the country that has prompted the passage of this bill. Any future congress that might disturb this adjustment, would act under a high responsibility, but it would be entirely within its competency to repeal, if it thought proper, the whole bill. It is far from the object of those who support this bill, to abandon or 123 SPEECHES OF HENRY CLAY. .surrender the policy of protecting American industry. Its protection or encouragement may be accomplished in various ways -first, by bounties, as far as they are within the constitutional power of congress to offer them; second, by prohibitions, totally excluding the foreign rival article; third, by high duties without regard to the aggregate amount of revenue which they produce; fourth, by discriminating duties so adjusted as to limit the revenue to the economical wants of government; and, fifth, by the admission of the raw material, and articles essential to manufactures, free of duty; to which may be added, cash duties, home valuations, and the regulation of auctions. A perfect system of protection would comprehend most if not all these modes of affording it. There might be at this time a prohibition of certain articles (ardent spirits and coarse cottons, for example,) to public advantage. If there were not inveterate prejudices and conflicting opinions prevailing, (and what statesman can totally disregard impedi- ments) such a compound system might be established. Now, Mr. President, before the assertion is made, that the bill surrenders the protective policy, gentlemen should understand perfectly what it does not as well as what it does propose. It impairs no power of congress over the whole subject; it contains no promise or pledge whatever, express or implied, as to bounties, prohibitions, or auctions; it does not touch the power of congress in regard to them, and congress is perfectly free to exercise that power at any time; it expressly recognises discriminating duties within a prescribed limit; it provides for cash duties and home valuations; and it secures a free list, embracing numerous articles, some of high importance to the manufacturing arts. Of all the modes of protection which I have enumerated, it affects only The third; that is to say, the imposition of high duties, producing a revenue beyond the wants of government. The senator from Massachusetts contends that the policy of protection was settled in 1816, and that it has ever since been maintained. Sir, it was settled long before 1816. It is coeval with the present constitution, and it will continue, under some of its various aspects, during the existence of the government. No nation can exist, no nation perhaps ever existed, without protection in some form, arid to some extent, being applied to its own industry. T1he direct and neces- sary consequence of abandoning the protection of its own industry, would be to subject it to the restrictions and prohibitions of foreign powers; and no nation, for any length of time, can endure an alien legislation in which it has no wvil. The discontents which prevail, and the safety of the republic, may require the modification of a specific mode of protection, but it must be preserved in some other more acceptable shape. All that was settled in 1816, in 1824, and in 182S, was, that pro- tection should be afforded by high duties, without regard to the 12-4 THE COMPROMISE TARIFF ACT. amount of the revenue which they miig-ht yield. During that w-hole period, we had a public debt which absorbed all the surpluses beyond the ordinary wants of government. Between 1816 and 1824, the revenue was liable to the greatest fluctuations, vibrating between the extremes of about nineteen and thirty-six millions of dollars. If there were mnore revenue, more debt was paid; if less, a smaller amount was reimbursed. Such was sometimes the deficiency of the revenue, that it became necessary to the ordinary expenses of government, to trench upon the ten millions annually set apart as a sinking fund, to extinguish the public debt. If the public debt remained undischarged, or we had any other practical mode of appropriating the surplus revenue, the form of protection, by high duties, might be continued without public detriment. It is the pay- ment of the public debt, then, and the arrest of internal improve- ments by the exercise of the veto, that unsettles that specific form of protection. Nobody supposes, or proposes, that we should continue to levy, by means of high duties, a large annual surplus, of which no practical use can be made, for the sake of the incidental protection which they afford. The secretary of the treasury estimates that surplus on the existing scale of duties, and with the other sources of revenue, at six millions annually. An annual accumulation at that rate, would, in a few years, bring into the treasury the whole currency of the country, to lie there inactive and dormant. This view of the condition of the country has impressed every public man writh the necessity of some mo(dification of the princi- ples of protection, so far as it depends upon high duties. The senator from MIassachusetts feels it; and hence, in the resolutions which he submitted, he proposes to reduce ihe duties, so as to limit the amount of the revenue to the wants of the governinent. With him revenue is the principal, protection the subordinate object. If protection cannot be enjoyed after such a reduction of duties as he thinks ought to be made, it is not to be extended. He says, specific duties and the power of discrimination, are preserved by his resolutions. So they may be under the operation of the bill. The only difierence between the two schemes is, that the bill, in the maximum which it provides, suggests a certain limit, while his resolutions lay down none. Below that maximum, the principle of discrimination and specific duties may be applied. The senator from Pennsylvania, (Mr. Dallas,) who, equally with the senator from Massachusetts, is opposed to this bill, wo'uld have agreed to the bill if it had fixed thirty instead of twenty per centum; and he woul1d have dispensed with home valuation, and come down to the revenue standard in five or six years. Now, Mr. President, I prefer, and I think the manufacturing interest will prefer, nine years of adequate protection, home valuations, and twenty per centum, to the plan of the senator from Pennsylvania. 125 SPEECHES OF HENRY CLAY. Mr. President. I want to be perfectly understood as to the motives which have prompted me to offer this measure. I repeat what I said on the introduction of it, that they are, first, to preserve the manufacturing interest, and, secondly, to quiet the country. I believe the American system to be in the greatest danger; and I believe it can be placed on a better and safer foundation at this session than at the next. I heard with surprise, my friend from Massachusetts say, that nothing had occurred within the last six months to increase its hazard. I entreat him to review that opinion. Is it correct Is the issue of numerous elections, including that of the highest officer of the government, nothing Is the explicit recommendation of that officer, in his message, at the opening of the session, sustained, as he is, by a recent triumphant election, nothing Is his declaration in his proclamation, that the burdens of the south ought to be relieved, nothing Is the introduction of a bill into the house of representatives, during this session, sane- tioned by the head of the treasury and the administration, prostra. ting the greater part of the manufactures of the country, nothing Are the increasing discontents, nothing Is the tendency of recent events to unite the whole south, nothing What have we not wit- nessed in this chamber Friends of the administration, bursting all the ties which seemed indissolubly to unite them to its chief, and, with few exceptions south of the Potomac, opposing, and vehemently opposing, a favorite measure of that administration, which three short months ago they contributed to establish! Let us not deceive ourselves. Now is the time to adjust the question, ill a manner satisfactory to both parties. Put it off until the next session, and the alternative may and probably then would be a speedy and ruinous reduction of the tariff, or a civil war with the entire south. It is well known, that the majority of the dominant party is adverse to the tariff There are many honorable exceptions, the senator from New Jersey, (Mr. Diekerson,) among them. But for the exertions of the other party, the tariff would have been long since sacrificed. Now let us look at the composition of the two branches of congress at the next session. In this body we lose three friends of the protective policy, without being sure of gaining one. Here, judging from present appearances, we shall at the next session be in the minority. In the house it is notorious, that there is a considerable accession to the number of the dominant party. How then, I ask, is the system to be sustained against numbers, against the whole weight of the administration, against the united south, and against the increased pending danger of civil war There is, indeed, one contingency that might save it, but that is too uncertain to rely upon. A certain class, of northern politicians, professing friendship to the tariff, have been charged with being secretly inimical to it, for political purpQses. Thew may chaig" 16 THt COMPkOMiSt TARIFF ACT. their ground, and come out open and undisguised supporters of the system. They may even find in the measure which I have brought forward, a motive for their conversion. Sir, I shall rejoice in it, from whatever cause it may proceed. And, if they can give greater strength and durability to the system, and at the same time quiet the discontents of its opponents, I shall rejoice still more. They shall not find me disposed to abandon it, because it has drawn succor from an unexpected quarter. No, Mr. President, it is not destruction, but preservation of the system at which we aim. If dangers now assail it, we have not created them. I have sustained it upon the strongest and clearest convictions of its expediency. They are entirely unaltered. Had others, who avow attachment to it, supported it with equal zeal and straights forwardness, it would be now free from embarrassment; but with them it has been a secondary interest. I utter no complaints; I make no reproaches. I wish only to defend myself now, as heretofore, against unjust assaults. I have been represented as the father of this system, and I am charged with an unnatural aban-' donment of my own offspring. I have never arrogated to myself any such intimate relation to it. I have, indeed, cherished it with parental fondness, and my affection is undiminished, but in what condition do I find this child It is in the hands of the Philistines, who would strangle it. I fly to its rescue, to snatch it from their custody, and to place it on a bed of security and repose for nine years, where it may grow and strengthen, and become acceptable to the whole people. I behold a torch about being applied to a favorite edifice, and I would save it if possible before it is wrapt in flames, or at least preserve the precious furniture which it contains, I wish to see the tariff separated from the politics of the country, that business men may go to work in security, with some prospect of stability in our laws, and without every thing being staked on the issue of elections, as it were on the hazards of the die. And the other leading object which has prompted the introduc.a tion of this measure, the tranquillizing of the country, is no less important. All wvise human legislation must consult in some degree the passions and prejudices, and feelings, as well as the interests of the people. It would be vain and foolish to proceed at all times, and under all circumstances, upon the notion of absolute certainty in any system, or infallability in any dogma, and to push these out without regard to any consequences. With us, who entertain the opinion that congress is constitutionally invested with powver to protect domestic industry, it is a question of mere expediency as to the form, the degree, and the time that the protec- tion shall be afforded. In weighing all the considerations which should control and regulate the exercise of that power, we ought not to overlook what is due to those who honestly entertain opposite opinions to large magsts of the community, and to deep, 127 SPEECHES OF HENRY CLAY. long-cherished, and growing prejudices. Perceiving, ourselves, no constitutional impediment, we have less difficulty in accomrno- dating ourselves to the sense of the people of the United States upon this interesting subject. I do believe that a majority of them is in favor of this policy; but I am induced to believe this almost against evidence. Two states in New England, which have been in favor of the system, have recently come out against it. Other states of the north and east have shown a remarkable indifference to its preservation. If, indeed, they have wished to preserve it, thev have nevertheless placed the powers of government in hands which ordinary information must have assured them were rather a hazardous depository. With us in the west, although we are not without some direct and considerable indirect interest in the system, we have supported it more upon national than sectional grounds. Meantime the opposition of a large and respectable section of the union, stimulated by political success, has increased, and is increasing Discontents are multiplying and assuming new and dangerous aspects. They have been cherished by the course and hopes inspired during this administration, which, at the verv moment that it threatens and recommends the use of the power of the union, proclaims aloud the injustice of the system which it would enforce. These discontents are not limited to those who maintain the extravagant theory of nullification; they are not confined to one state; they are coextensive with the entire south, and extend even to northern states. It has been intimated by the senator from Massachusetts, that, if we legislate at this session on the tariff, we would seem to legislate under the influence of a panic. I believe, Mr. President, I am not more sensible to danger of any kind, than my fellow-men are generally. It perhaps requires as much moral courage to legislate under the imputa- tion of a panic, as to refrain from it lest such an imputation should be made. But he who regards the present question as being limited to South Carolina alone, takes a view of it much too contracted. There is a sympathy of feeling and interest throughout the whole south. Other southern states may differ from that as to the remedy to be now used, but all agree, (great as in my humble judgment is their error,) in the substantial justice of the cause. Can there be a doubt that those who think in common will sooner or later act in concert Events are on the wing, and hastening this cooperation. Since the commencement of this session, the most powerful southern member of the union has taken a measure which cannot fail to lead to important consequences. She has deputed one of her most distinguished citizens to request a suspen- sion of measures of resistance. No attentive observer can doubt that the suspension will be made. Well, sir, suppose it takes place, and congress should fail at the next session to afford the redress 128 THE COMPROMISE TARIFF ACT. i2. which will be solicited, what course would every principle of honor, and every consideration of the interests of Virginia, as she understands them, exact from her Would she not make common cause with South Carolina and if she did, would not the entire south eventually become parties to the contest The rest of the union might put down the south, and reduce it to submission; but, to say nothing of the uncertainty and hazards of all war, is that a desirable state of things Ought it not to be avoided if it can be honorably prevented I am not one of those who think that we must rely exclusively upon moral power, and never resort to physical force. I know too well the frailties and follies of man, in his collective as well as individual character, to reject in all possible cases, the employment of force; but I do think that when resorted to, especially among the members of a confederacy, it should manifestly appear to be the only remaining appeal. But suppose the present congress terminates without any adjust- ment of the tariff, let us see in wvlat condition its friends will find themselves at the next session. South Carolina will have postponed the execution of the law passed to carry into effect her ordinance, until the end of that session. All will be quiet in the south for the present. The president, in his opening message, will urge that justice, as he terms it, be done to the south; and that the burdens imposed upon it by the tariff be removed. The whole weight of the administration, the united south, and majorities of the domi- nant party, in both branches of congress, will be found in active cooperation. Will the gentleman from Massachusetts tell me how we are to save the tariff against this united and irresistible force They will accuse us of indifference to the preservation of the union, and of being willing to expose the country to the dangers of civil war. The fact of South Carolina's postponing of her ordi- nance, at the instance of Virginia, and once more appealing to the justice of congress, will be pressed with great emphasis and effect. It does appear to me impossible that we can prevent a most inju- rious modification of the tariff, at the next session, and that this is the favorable moment for an equitable arrangement of it. I have been subjected to animadversion, for the admission of the fact, that, at the next session, our opponents will be stronger, and the friends of the American system weaker than they are in this congress. But, is it not so And is it not the duty of every man, who aspires to be a statesman, to look at naked facts as they really are Must he suppress them Ought he, like children, to throw the counter- pane over his eyes, and persuade himself that he is secure from danger Are not our opponents as well informed as we are, about their own strength If we adjourn, without any permanent settlement of the tariff, in what painful suspense and terrible uncertainty shall we not leave the manufacturers and business men of the country All VOIL. II. 17 129 SPEECHES OF HtNRY CLAY. eyes will be turned, with trembling and fear, lo the next session. Operations will be circumscribed, and new enterprises checked; or, if otherwise, ruin and bankruptcy may be the consequence. I believe, sir, this measure, which offers a reasonable guarantee for permanence and stability, will be hailed by practical men with pleasure. The political manufacturers may be against it, but it will command the approbation of a large majority of the business manufacturers of the country. But the objections of the honorable senator from Massachusetts are principally directed to the period beyond 1842. During the intermediate time, there is every reason to hope and believe that the bill secures adequate protection. All my information assures me of this; and it is demonstrated by the fact, that, if the measure of protection, secured prior to the thirty-first of December, 1841, were permanent; or if the bill were even silent beyond that period, it would command the cordial and unanimous concurrence of the friends of the policy. What then divides, what alarms us It is what may possibly be the state of things in the year one thousand eight hundred and forty-two, or subsequently! Now, sir, even if that should be as bad as the most vivid imagination, or the most eloquent tongue could depict it, if we have intermediate safety and security, it does not seem to me wise to rush upon certain and present evils, because of those which, admitting their possibility, are very remote and contingent. What! shall we not extinguish the flame which is bursting through the roof that covers us, because, at some future and distant day, we may be again threatened with conflagration I do not admit that this bill abandons or fails, by its provisions, to secure reasonable protection beyond 1842. I cannot know, I pretend not to know, what will then be the actual condition of this country, and of the manufacturing arts, and their relative condition to the rest of the world. I would as soon confide in the forecast of the honorable senator from Massachusetts, as in that of any other man in this senate, or in this country; but he, nor any one else, can tell what that condition will then be. The degree of protection which wvill be required for domestic industry beyond 1842, depends upon the reduction of wages, the accumulation of capital, the improvement in skill, the protection of machinery, and the cheapening of the price, at home, of essential articles, such as fuel, iron, and so forth. I do not think that the honorable senator can throw himself forward to 1842, and tell us what, in all these particulars, will be the state of this country, and its relative state to other countries. We know that, in all human probability, our numbers will be increased by an addition of one third, at least, to their present amount, and that may materially reduce wages. We have reason to believe that our capital will be augmented, our skill improved; and we know that great progress has been made, and 130 THIE COMPROMISE TARIFF ACT. is making, in machinery. There is a constant tendency to decrease in the price of iron and coal. The opening of new mines and new channels of communication, must continue to lower it. The successful introduction of the process of cooking, will have great effect. The price of these articles, one of the most opulent and intelligent manufacturing houses in this country assures me, is a principal cause of the present necessity of protection to the cotton interest; and that house is strongly inclined to think that twenty per centum, with the other advantages secured in this bill, may do beyond 1842. Then, sir, what effect may not convulsions and revolutions in Europe, if any should arise, produce I am far from desiring them, that our country may profit by their occurrence. Her greatness and glory rest, I hope, upon a more solid and more generous basis. But wve cannot shut our eyes to the fact, that our greatest manufacturing, as well as commercial competitor, is under- going a momentous political experiment, the issue of which is far from being absolutely certain. Who can raise the veil of the succeeding nine years, and show what, at their termination, will be the degree of competition which Great Britain can exercise towards us in the manufacturing arts Suppose, in the progress of gradual descent towards the revenue standard for which this bill provides, it should some years hence become evident that further protection, beyond IS42, than that which it contemplates may be necessary, can it be doubted that, in some form or other, it will be applied Our misfortune has been, and yet is, that the public mind has been constantly kept in a state of feverish excitement, in respect to this system of policy. Conventions, elections, congress, the public press, have been for years all acting upon the tariff, and the tariff acting upon them all. Prejudices have been excited, passions kindled, and mutual irrita- tions carried to the highest pitch of exasperation, insomuch that good feelings have been almost extinguished, and the voice of reason and experience silenced, among the members of the confed- eracy. Let us separate the tariff from the agitating politics of the country, place it upon a stable and firm foundation, and allow our enterprising countrymen to demonstrate to the whole union, by their skilful and successful labors, the inappreciable value of the arts. If they can have what they have never yet enjoyed, some years of repose and tranquillity, they will make, silently, more converts to the policy, than would be made during a long period of anxious struggle and boisterous contention. Above all, I count upon the good effects resulting from a restoration of the harmony of this divided people, upon their good sense and their love of justice. Who can doubt, that when passions have subsided, and reason has resumed her empire, that there will be a disposition throughout the whole union, to render ample justice to all its parts Who will believe that any section of this great confederacy would 131 SPEECHES OF HENRY CLAY. look with indifference to the prostration of the interests of another section, by distant and selfish foreign nations, regardless alike of the welfare of us all No, sir; I have no fears beyond 1842. The people of the United States are brethren, made to love and respect each other. Momentary causes may seem to alienate them, but, like family differences, they will terminate in a closer and more affectionate union than ever. - And how much more estimable will be a system of protection, based on common con- viction and common consent, and planted in the bosoms of all, than one wrenched by power from reluctant and protesting weakness That such a system will be adopted, if it should be necessary for the period of time subsequent to 1842, I will not doubt. But, in the scheme which I originally proposed, I did not rely exclu- sively, great as my reliance is, upon the operation of fraternal feelings, the return of reason, and a sense of justice. The scheme contained an appeal to the interests of the south. According to il, unmanufactured cotton was to be a free article after 1842. Gentle- men from that quarter have again and again asserted that they were indifferent to the duty of three cents per pound on cotton, and that they feared no foreign competition. I have thought otherwise; but I was willing, by way of experiment, to take them at their word; not that I was opposed to the protection of cotton, but believing that a few cargoes of foreign cotton introduced into our northern ports, free of duty, would hasten our southern friends to come here and ask that protection for their great staple, which is wanted in other sections for their interests. That feature in the scheme was stricken out in the select committee, but not by the consent of mv friend from Delaware, (Mvlr. Clayton,) or myself. Still, after 1842, the south may want protection for sugar, for tobacco, for Virginia coal, perhaps for cotton and other articles, whilst other quarters may need it for wool, woollens, iron, and cotton fabrics; and these mutual wants, if they should exist, will lead, I hope, to some amicable adjustment of a tariff for that distant period, satisfactory to all. The theory of protection supposes, too, that, after a certain time, the protected arts will have acquired such strength and perfection as will enable them subsequently, unaided, to stand up against foreign competition. If, as I have no doubt, this should prove to be correct, it will, on the arrival of 1842, encourage all parts of the union to consent to the continuance of longer protection to the few articles which may then require it. The bill before us strongly recommends itself by its equity and impartiality. It favors no one interest, and no one state, by an unjust sacrifice of others. It deals equally by all. Its basis is the act of July last. That act was passed, after careful and thorough investigation, and long deliberation, continued through several months. Although it may not have been perfect in its adjustment 132 THE COMPROMISE TARIFF ACT. of the proper measure of protection to each article which was supposed to merit it, it is not likely, that, even with the same length of time before us, we could make one more perfect. Assuming the justness of that act, the bill preserves the respective propositions for which the act provides, and subjects them all to the same equal but moderate reduction, spread over the long space of nine years. The senator from Massachusetts contends that a great part of the value of all protection, is given up by dispensing with specific duties and the principle of discrimination. But much the most valuable articles of our domestic manufactures, (cotton and wool- lens, for example,) have never enjoyed the advantage of specific duties. They have always been liable to ad valorem duties, with a very limited application of the minimum principle. The bill does not, however, even after 1842, surrender either mode of laying duties. Discriminations are expressly recognised below the maxi- mum, and specific duties may also be imposed, provided they do not exceed it. The honorable senator also contends that the bill is imperfect, and that the execution of it will be impracticable. lie asks, how is the excess above twenty per centum lo be ascertained on coarse and printed cottons, liable to minimums of thirty and thirty-five cents, and subject to a duty of twenty-five per centum, ad valorem; and how is it to be estimated in the case of specific duties Sir, it is very probable that the bill is not perfect, but I do not believe that there is any thing impracticable in its execution. IMuch will, however, depend upon the head of the treasury department. In the instance of the cotton minimuins, the statute having, by way of exception to the general ad valorem rule, declared, in certain cases, how the value shall be estimated, that statutory value ought to govern; and consequently, the twenty per cenlum should be exclusively deducted from the twenty-five per centum, being the rate of duties to which cottons generally are liable; and the bien- nial tenths should be subtracted from the excess of five per centum. With regard to specific duties, it will, perhaps, be competent to the secretary of the treasury, in the execution of the law, for the sake of certainty, to adopt some average value, founded upon importa- tions of a previous year. But if the value of each cargo, and every part of it, is to be ascertained, it would be no more than what now is the operation in the case of woollens, silks, cottons above thirty and thirty-five cents, and a variety of other articles; and consequently there would be no more impracticability in the law. To all defects, however, real or imaginary, Nwhich it may be sup- posed will arise in the execution of the principle of tihe bill, I oppose one conclusive, and, I hope, satisfactory answer. Congress will be in session one whole month before the commencement of the law; and if, in the meantime, omissions calling for further legislation shall be discovered, there will be more time then than 133 SPEECHES OF HENRY CLAY. we have now to supply them. Let us, on this occasion of com- promise, pursue the example of our fathers, who, under the influence of the same spirit, in the adoption of the constitution of the United States, determined to ratify it, and go for amendments afterwards. To the argument of the senator from Massachusetts, that this interest, and that, and the other, cannot be sustained under the protection. beyond 1842, I repeat the answer, that no one can now tell what may then be necessary. That period will provide for itself. But I was surprised to hear my friend singling out iron as an article that would be most injuriously affected by the operation of this bill. If I am not greatly mistaken in my recollection, he opposed and voted against the act of 1824, because of the high duty imposed on iron. But for that duty, (and perhaps the duty on hemp,) which he then considered threw an unreasonable burden upon the navigation of the country, he would have supported that act. Of all the articles to which protecting duties are applied, iron, and the manufactures of iron, enjoy the highest protection. During the term of nine years, the deductions from the duty are not such as seriously to impair those great interests, unless all my information deceives me; and beyond that period, the remedy has been already indicated. Let me suppose that the anticipations which I form, upon the restoration of concord and confidence, shall be all falsified; that neither the sense of fraternal affection, nor common justice, nor even common interests, will lead to an amicable adjustment of the tariff beyond 1842. Let me suppose that period has arrived, and that the provisions of the bill shall be interpreted as an obligatory pledge upon the congress of that day; and let me suppose, also, that a greater amount of protection than the bill provides, is absolutely necessary to some interests; what is to be done Regarded as a pledge, it does not bind congress for ever to adhere to the specific rate of duty contained in the bill. The most, in that view, that it exacts, is, to make a fair experiment. If, after such experiment, it should be demonstrated, that, under such an arrangement of the tariff, the interests of large portions of the union would be sacrificed, and they exposed to ruin, congress will be competent to apply some remedy that will be effectual; and I hope and believe that, in such a contingency, some will be devised that may preserve the harmony and perpetuate the blessings of the union. It has been alleged, that there will be an augmentation, instead of a diminution of revenue, under the operation of this bill. I feel quite confident of the reverse; but it is sufficient to say, that both contingencies are carefully provided for in the bill, without affecting the protected articles. The gentleman from Massachusetts dislikes the measure, because it commands the concurrence of those who have been hitherto 134 THE COHIPROMIS F TARIFF ACT. opposed, in regard to the tariff; and is approved by the gentleman from South Carolina, (Mr. Calhoun,) as well as by myself. Why, sir, the gentleman has told us that he is not opposed to any compromise. Will he be pleased to say how any compromise can be effected, without a concurrence between those who had been previously divided, and taking some medium between the two extremes The wider the division may have been, so much the better for the compromise, which ought to be judged of by its nature and by its terms, and not solely by those who happen to vote for it. It is an adjustment to which both the great interests in this country may accede without either being dishonored. The triumph of neither is complete. Each, for the sake of peace, harmony, and union, makes some concessions. The south has contended that every vestige of protection should be eradicated from the statute-book, and the revenue standard forthwith adopted. Tn assenting to this bill, it waives that pretension-yields to reasonable protection for nine years; and consents, in consideration of the maximum of twenty per centuLm, to be subsequently applied, to discriminations below it, cash duties, home valuations, and a long list of free articles. The north and vest have contended for the practical application of the principle of protection, regulated by no other limit than the necessary wants of the country. If they accede to this adjustment, they agree, in consideration of the stability and certainty which nine years' duration of a favorite system of policy affords, and of the other advantages which have been enumerated, to come down in 1842 to a limit not exceeding twenty per centum. Both parties, animated by a desire to avert the evils which might flow from carrying out into all their conse- quences the cherished system of either, have met upon common ground, made mutual and friendly concessions, and, I trust, and sincerely believe, that neither will have, hereafter, occasion to regret, as neither can justly reproach the other with what may be now done. This, or some other measure of conciliation, is now more than ever necessary, since the passage, through the senate, of the enforcing bill. To that bill, if I had been present, on the final vote, I should have given my assent, although with great reluctance. I believe this government not only possessed of the constitutional power, but to be bound by every consideration, to maintain the authority of the laws. But I deeply regretted the necessity which seemed to me to require the passage of such a bill. And I was far from being without serious apprehensions as to the conse- quences to which it might lead. I felt no new-born zeal in favor of the present administration, of which I now think as I have always thought. I could not vote against the measure; I would not speak in its behalf. I thought it most proper in me to leave to the friends of the administration and to others, who might feel themselves 135i SPEECHES OF HENRY CLAY. particularly called upon, to defend and sustain a strong measure of the administration. With respect to the series of acts to which the executive has resorted, in relation to our southern disturbance, this is not a fit occasion to enter upon a full consideration of them; but I will briefly say, that, although the proclamation is a paper of uncommon ability and eloquence, doing great credit, as a composition, to him who prepared it, and to him who signed it, I think it contains some ultra doctrines, which no party in ibis country had ventured to assert. With these are mixed up many sound principles and just views of our political systems. If it is to be judged by its effects upon those to whom it was more imme- diately addressed, it must be admitted to have been ill-timed and unfortunate. Instead of allaying the excitement which prevailed, it increased the exasperation in the infected district, and afforded new and unnecessary causes of discontent and dissatisfaction in the south generally. The message, subsequently transmitted to congress, communicating the proceedings of South Carolina, and calling for countervailing enactments, was characterized with more prudence and moderation. And, if this unhappy contest is to continue, I sincerely hope, that the future conduct of the adminis- tration may be governed by wise and cautious counsels, and a parental forbearance. But when the highest degree of animosity exists; when both parties, however unequal, have arrayed them- selves for the conflict; who can tell when, by the indiscretion of subordinates, or other unforeseen causes, the bloody struggle may commence In the midst of magazines, who knows when the fatal spark may produce a terrible explosion And the battle once begun, where is its limit What latitude will circumscribe its rage Who is to command our armies When, and where, and how, is the war to cease In what condition will the peace leave the American system, the American union, and, what is more than all, American liberty I cannot profess to have a confidence, which I have not, in this administration, but if I had all confidence in it, I should still wish to pause, and, if possible, by any honorable adjustment, to prevent awful consequences, the extent of which no human wisdom can foresee. It appears to me, then, Mr. President, that we ought not to content ourselves with passing the enforcing bill only. Both that and the bill of peace seem to me to be required for the good of our country. The first will satisfy all who love order and law, and disapprove the inadmissible doctrine of nullification. The last will soothe those who love peace and concord, harmony and union. One demonstrates the power and the disposition to vindicate the authority and supremacy of the laws of the union; the other offers that, which, if it be accepted in the fraternal spirit in which it is tendered, will supersede the necessity of the employ- ment of all force. 136 THE COMPROMISE TARIFF ACT. There are some who say, let the tariff go down; let our manu- factures be prostrated, if such be the pleasure, at another session, of those to whose hands the government of this country is confided; let bankruptcy and ruin be spread over the land; and let resistance to the laws, at all hazards, be subdued. Sir, they take counsel from their passions. They anticipate a terrible reaction from the downfall of the tariff, which would ultimately reestablish it upon a firmer basis than ever. But it is these very agitations, these mutual irritations between brethren of the same family, it is the individual distress and general ruin that would necessarily follow the overthrow of the tariff, that ought, if possible, to be prevented. Besides, are we certain of this reaction Have we not been disappointed in it as to other measures heretofore But suppose, after a long and embit- tered struggle, it should come, in what relative condition would it find the parts of this confederacy In what state our ruined manufactures When they should be laid low, who, amidst the fragments of the general wreck, scattered over the face of the land, would have courage to engage in fresh enterprises, under a new pledge of the violated faith of the government If we adjourn, without passing this bill, having intrusted the executive with vast powers to maintain the laws, should he be able by the next session to put down all opposition to them, will he not, as a necessary consequence of success, have more power than ever to put down the tariff also Has he not said that the south is oppressed, and its burdens ought to be relieved And will he not feel himself bound, after he shall have triumphed, if triumph he may in a civil wvar, to appease the discontents of the south by a modification of the tariff, in conformity with its wishes and demands No, sir; no, sir; let us save the country from the most dreadful of all calamities, and let us save its industry, too, from threatened destruction. Statesmen should regulate their conduct and adapt their measures to the exigences of the times in which they live. They cannot, indeed, transcend the limits of the constitutional rule; but with respect to those systems of policy which fall within its scope, they should arrange them according to the interests, the wants, and the prejudices of the people. Two great dangers threaten the public safety. The true patriot will not stop to inquire how they have been brought about, but will fly to the deliverance of his country. The difference between the friends and the foes of the compromise, under consideration, is, that they would, in the enforcing act, send forth alone a flaming sword. We would send out that also, but along with it the olive branch, as a messenger of peace. They cry out, the law! the law! the law! Power! power! power! We, too, reverence the law, and bow to the supremacy of its obligation; but we are in favor of the law executed in mildness, and of power tempered with mercy. They, as we think, would hazard a civil commotion, beginning in South Carolina and VoL. II. 18 137 S 1' EECIE S OF HENRY CLAY. extending, God only knows where. While we would vindicate the federal government, wve are for peace, if possible, union, and liberty. We want no wvar, above all, no civil war, no family strife. We want to see no sacked cities, no desolated fields, no smoking ruins, no streams of American blood shed by American arms! I have been accused of ambition in presenting this measure. Ambition! inordinate ambition! If I had thought of myself only, I should have never brought it forward. I know well the perils to which I expose myself; the risk of alienating faithful and valued friends, with but little prospect of making new ones, if any new ones could compensate for the loss of those whom we have long tried and loved; and the honest misconceptions both of friends and foes. Ambition! If I had listened to its soft and seducing whispers; if I had yielded myself to the dictates of a cold, calcu- lating, and prudential policy, I would have stood still and unmoved. I might even have silently gazed on the raging storm, enjoyed its loudest thunders, and left those who are charged with the care of the vessel of state, to conduct it as they could. I have been heretofore often unjustly accused of ambition. Low, grovelling souls, who are utterly incapable of elevating themselves to the higher and nobler duties of pure patriotism -beings, who, for ever keeping their own selfish aims in view, decide all public measures by their presumed influence on their aggrandizement -judge me by the venal rule which they prescribe to themselves. I have given to the winds those false accusations, as I consign that which now impeaches my motives. I have no desire for office, not even the highest. The most exalted is but a prison, in which the incar- cerated incumbent daily receives his cold, heartless visitants, marks his weary hours, and is cut off from the practical enjoyment of all the blessings of genuine freedom. I am no candidate for any office in the gift of the people of these states, united or separated; I never wish, never expect to be. Pass this bill, tranquillize the country, restore confidence and affection in the union, and I am willing to go home to Ashland, and renounce public service for ever. I should there find, in its droves, under its shades, on its lawns, amidst my flocks and herds, in the bosom of my family, sincerity and truth, attachment, and fidelity, and gratitude, which I have not always found in the walks of public life. Yes, I have ambition; but it is the ambition of being the humble instrument, in the hands of Providence, to reconcile a divided people; once more to revive concord and harmony in a distracted land -the pleasing ambition of contemplating the glorious spectacle of a free, united, prosperous, and fraternal people! 138 IN SUPPORT OF THE COMPROMISE ACT. IN THE SENATE, MARCH 1,1833. [TriE bill for modifying the duties on imports, as passed by the house of represent- atives, (in effect, Mr. Clay's bill,) being under consideration, and on its passage, a brief discussion took place, between Alessrs. Calhoun, Mangum, Frelinghuysen, Sprague, and others, in favor of the bill, and Messrs. Webster, Dallas, Robbins, and others, in opposition.] AIR. CLAY then said a few words in reference to this bill and the enforcing bill, both of which he considered that it was necessary to send forth, as well to show that the laws must be executed, as that there is a disposition to make concessions. He stated, that on the subject of the government's being a compact, he principally agreed with the senator from South Carolina, but with some difference as to the character of the right conferred by that compact. He did not adopt the opinion, that there had been any advance made in usurpation of powers by the general government. He then went into a view of the history of this system, to show, that twelve or thirteen years ago, there was no opposition raised against the power of congress to protect domestic industry. The opposition on constitutional grounds had subsequently grown up. He then stated, that in his opinion no state could so practically construe the constitution as to nullify the laws of the United States, without plunging the country into all the miseries of anarchy. He said that he adhered to the doctrines of that ablest, wisest, and purest of American statesmen, James Madison, who still lives, and resides in Virginia -the doctrines which were advanced by him in 1799. The answer of that distinguished man to the resolutions of the other states, and his address to the people, effected a sudden revolution of public opinion. The people rallied around him; the alien and sedition laws were repealed; and the usurpations of the general government were arrested. He viewed the government as federative in its origin, in its character, and in its operation, and under the clause of the constitution which gives to congress power to pass all laws to carry into effect the granted powers, they could pass all necessary laws. He hoped that the effect of this bill would conciliate all classes and all sections of the Union. SPEECHES OF HENRY CLAY. He did not arrogate any merit for the passage of this bilL He had cherished this system as a favorite child, and he still clung to it, and should still cling to it. Why had he been reproached He had come to the child and found it in the hands of the Philistines, who were desirous to destroy it. He wished to save and cherish it, and to find for it better and safer nurses. He did not wish to employ the sword, but to effect his object by concession and conciliation. He wished to see the system placed on a securer basis, to plant it in the bosoms and affections of the people. The gentleman from Pennsylvania, who had learned his views of the system from the senator from South Carolina, had spoken of him as the pilot who was directing the vessel. If it wvas so, he would ask if she had been secured by a faithful crew If all had been faithful, he believed there would have been no danger in assailing the system. He assailed no one; he merely defended himself against the reproaches of others. Another motive with him was to preserve the union. He feared he saw hands uplifted to destroy the system; he saw the union endangered; and in spite of all peril which might assail himself, he had determined to stand forward and attempt the rescue. He felt himself pained exceedingly in being obliged to separate on the question, from valued friends, especially from his friend from Massachusetts, whom he had always respected, and whom he still respected. He then replied to the argument founded on the idea that the protective principle had been abandoned by this bill. He admitted that protection had been better secured by former bills, but there was no surrender by this. He considered revenue as the first object and protection as the second. As to the reduction of the revenue, he was of opinion that there was an error in the calculations of gentlemen. He thought that in the article of silks alone, there would be a considerable reduction. The protection to the mechanic arts was only reduced by the whole operation of the bill to twenty-six per centum, and he did not know that there would be any just ground for complaint, as some of the mechanic arts now enjoy only twenty-five per centum. The argument of the senator from New York, (Mr. Wright,) was against the bill, but he was happy to find his vote was to be for it. If his argument brought other minds to the same conclusion to which it had brought his, the bill would not be in any danger. He would say, save the country; save the union; and save the American system. .140 ON THE PRESIDENT'S MESSAGE, RETURNING THE PUBLIC LAND BILL. IN THE SENATE OF THE UNITED STATES, DECEMBER 5, 1833. [TsEE bill to distribute the proceeds of the public lands, introduced by Mr. Clay, passed both houses of congress on the first of March, 18332, one day before the adjourn- ment, and the term of the twenty-second congress expired on Sunday, the third of March, 1832. The majorities were so large in favor of the bill, that it was believed if the president had immediately returned the bill with his objections, on the second of March, it would have been passed by the constitutional ma'jority of two thirds of the members present in each house, and thus have become a law, notwithstanding the objections of president Jackson. But the president adopted the unprecedented course of retaining the bill until the next session of congress. In December, 1833, the twenty-third congress assembled, and the president sent a message to the senate, returning the land bill which had been passed by the previous congress. with his objections to the same, and stating that for want of time he had not pursued the usual course. The message of the president, assigning his reasons for the return of the bill, having been read, Mr. Clay rose and made the following remarks THis measure had been first introduced into congress at the session before the last, under circumstances which must be within the recollection of every member of the senate. Its object was, to dispose of the proceeds of the public lands for a limited time. The subject had been greatly discussed not only in congress, but throughout the country. The principles and provisions of the bill were well and generally understood. The subject had attracted the attention of the chief magistrate himself, and this bill was made the subject of commentary in his message at the commencement of the last session of congress. It must, therefore, be considered as a subject perfectly well understood by the president, for it was not to be supposed that he would have commented upon it, and recom- mended it to the attention of congress, if it had not been understood. During the last session, this bill, which had previously been before the house, was introduced in this body, and was passed, and sent to the other house, whence it was returned with a slight amend- ment,taking away the discretion which had been vested in the state legislatures as to the disposal of the proceeds. This'bill, which had been before congress the session before the last, which had passed at the last scssion. having been before the country for a SPEECHES OF HENRY CLAY. whole year, when it passed the two houses, was placed before the executive, with a number of other measures, just before the close of the last congress. As the subject had been before the president for consideration so long previously to the passage of the bill, and he had reflected upon it, it was not to have been expected that he would take advantage of the shortness of the session to retain the bill until this time. Yet such had been the fact, and a proceeding had taken place which was unprecedented and alarming, and which, unless the people of this country were lost to all sense of what was due to the legislative branch of the government, to themselves, and to those principles of liberty which had been trans- mitted to them from the revolution, they would not tolerate. It was at least due to the legislature, that the president should have sent a few lines, courteously informing them, that when his own mind was made up he would communicate the result. But, without deigning to make known his intention, or to impart the reasons which influenced him, he despotically kept silence, and retained the bill. He begged leave to congratulate the senate on the return of the bill. The question which now presented itself was, whether the bill was dead, in consequence of the non-action of the president, or whether it had become an existing law. I-le was not now about to discuss that question; but he had felt himself called on to make a few observations on the extraordinary course, and to say that it was due to congress, to the people, and to the executive himself, to have informed the last congress in reference to this subject, concerning which he must have made up his mind. He would now move to lay this bill on the table, and would after- wards give notice of a day when he should ask leave to bring in a bill in order to submit it again to the action of the senate. Mr. Kane wished to know if it was the intention of the senator from Kentucky that the bill should lie permanently on the table, or only to be called up at an early day. Mr. Clay replied that the only alternative was to consider the bill as defunct, or as an existing law. If the gentleman from Illinois could point out any other course, he had read some clause in the constitution which he (Mr. Clay) had never been so fortunate as to find. Mr. Benton said he would wish to make a remark; and, if he was precluded by the pressing of this question, he would find some other opportunity of making it. The question was then taken on the motion to lay the bill upon the table, and decided in the affirmative -ays nineteen. Mr. Benton then moved to take up the message for consideration. After further discussion, Mr. Clay said, he did not rise to reply to any one who had felt himself called upon to rise in the senate to vindicate the president. If there were any such member, he did not wish to disturb him in his office of vindicator of the president, or to affect the complacency with which he might regard his vindi- 14'2 VETO OF THE LAND BILL. 1,3 cation. But he (Mr. Clay) stood here to sustain his own course, to vindicate the constitution, and to vindicate the rights of congress under it. And he must repeat, that the withholding of the land bill, at the last session, under the circumstances of the case, was a violation of the constitution, and disrespectful to the senate. What were the circumstances At two different sessions of congress, the land subject was before it. At that which preceded the last, a bill had been introduced to distribute among the states the proceeds of the public lands. The whole subject, by the bill and by reports of committees, was laid before congress and spread before the country. A copy of the bill, when it was first introduced, according to the constant practice of congress, was sent to the president. He was thus, as wvell as the country generally, put in entire possession of the matter. It attracted great public attention. It engaged that of the president. And, accordingly, at the commencement of the last session, in his annual message, he adverted to it, in a manner which evidently showed that the writer of the message fully understood it, and all the views which had been developed about it. [Here Mr. Clay read the message of the last session, so far as it related to the public lands, to show that the president had himself invited the attention of congress to it, as one of urgent and pressing importance; that the discretion of congress to make any disposition of the public lands, which they might deem best for the harmony, union, and interest of the United States, was uncontrolled; that the ques- tion ought speedily to be settled; and that the president had considered, but objected to the bill of the previous session, proposing as a substitute, a plan of his own, which, while the message on the table argued that the public lands belonged to all the states, proposed to give the unsold lands to some of them.] Thus was congress, at the commencement of the last session, officially invited to act, and to act speedily, respecting the public lands; and thus did the president manifest his knowledge of the provisions of the bill of the previous session. Well, sir, congress again took up the question. The identical bill of the previous session was again introduced, and again, prior to its passage, placed before the president, along with the other printed documents, according to standing usage. And it was passed by both houses, substantially in the shape in which at the previous session it was passed by the senate, except that the restriction as to the powver of the states to apply the sum to be distributed among the several states, after the deduction of the twelve and a half per centum first set apart for the new states, was stricken out. In this form, the bill was laid before the president on the second day of March last. It was no stranger, but an old acquaintance. He had seen it repeatedly before; and he must have been well informed as to its progress in congress. He had commented on the very project contained in the bill, when he had brought forward his own in his message, at the opening of the session. Without deigning to communicate to congress what disposition he had made, 143 SPEECHES OF HENRY CLAY. or meant to make of it, he permitted the body to rise, in utter igno rance of his intentions. It may be true, that there was a great press of business on the president on the second of March, and that he may have acted upon some ninety or one hundred bills. But this is what occurs with every president on the day before the termination of the short session of congress. With most of those bills the president must have been less acquainted than he was with the land bill. Of some of them he probably had never heard at all. Not one of them possessed the importance of the land bill. How did it happen that the president could find time to decide on so many new bills, and yet had not time to examine and dispose of one which had long been before him and the public; one embracing a subject which he thought the union, harmony, and interests of the slates required should be speedily adjusted; one which he himself had pronounced his judgment upon at the commencement of the session By withholding the bill, the president took upon himself a responsi- bility beyond the exercise of the veto. He deprived congress altogether of its constitutional right to act upon the bill, and to pass it, his negative notwithstandii g. The president is, by the constitution, secured time to consider bills which shall have passed both branches of congress. But so is congress equally secured the right to act upon bills which they have passed, and which the president may have thought proper to reject. If he exercises his veto, and returns the bill, two thirds may pass it. But if he withholds the bill, it cannot become a law, even although the two houses should be unanimously in its favor. Mr. Clay denied that the constitution gave to the president ten days to consider bills, except at the long session. At that session, the period of its termination is uncertain, and dependent upon the will of congress. To guard against a sudden adjournment, by which the president might be deprived of due time to deliberate on an important bill, the constitution provides for ten days at that session. But, at the short session, it is not an adjournment but a dissolution of congress, on the third of March, and the day of that dissolution is fixed in the constitution itself, and known to all. Mr. Clay contended, therefore, that the act of withholding the bill was arbitrary and unconstitutional, by which congress, and the senate especially, in which the bill originated, were deprived of their constitutional right of passing on the bill. after the president had exercised his powers. Respect to congress required of the president, if he really had not time to form a judgment on the bill, or, having formed it, had not time to lay his reasons before the body, a communication to that effect. But, without condescending to transmit one word upon the subject to congress, he suffered the session to terminate, and the members to go home destitute of all information, until this day, of his intentions. Mr. Benton then withdrew his motion to take up the bill. 144 ON THE REMOVAL OF THE PUBLIC DEPOSITS FROM THE BANK OF THE UNITED STATES. IN THE UNITED STATES SENATE, DECEMBER 26, 1833. [THE house of representatives, on the second of March, 1833, adopted, by a vote of one hundred and ten to forty-six, the following resolution: 'that the government deposits may, in the opinion of the house, be safely continued in the bank of the United States.' Notwithstanding this resolution, the president of the United States, (general Jackson,) in September following, read a paper to his cabinet, declaring his intention to cause the deposits to be removed from the bank. He then removed the secretary of the treasury, Mr. Duane, from office, in consequence of his refusal to comply with the president's orders in this respect, and appointed Mr. Taney secre- tary in his place; who removed the deposits from the United States bank, on the first of October, 1833, and placed them in sundry state banks. At the ensuing session of congress, the secretary of the treasury, Mr. Taney, having made his report on that transaction, the subject came up for consideration in the senate, when Mr. Clay submitted the following resolutions, which he accompanied with the subjoined speech.] RESOLVED, that by dismissing the late secretary of the treasury, because he would not, contrary to his sense of his own duty, remove the money of the United States in deposit with the bank of the United States and its branches, in conformity with the president's opinion; and by appointing his successor to effect such removal, which has been done, the president has assumed the exercise of a power over the treasury of the United States not granted to him by the constitution and laws, and dangerous to the liberties of the people. Resolved, that the reasons assigned by the secretary of the treasury for the removal of the money of the United States, deposited in the bank of the United States and its branches, communicated to congress on the third of December, 1833, are unsatisfac- tory and insufficient. WE are in the midst of a revolution, hitherto bloodless, but rapidly tending towards a total change of the pure republican charac- ter of the government, and to the concentration of all power in the hands of one man. The powers of congress are paralysed, except when exerted in conformity with his will, by frequent and an extraordinary exercise of the executive veto, not anticipated by the founders of our constitution, and not practiced by any of the predecessors of the present chief magistrate. And, to cramp them still more, a new expedient is springing into use, of withholding vOL. II. 19 19 VOL. IX. SPEECHES Or HENRY CLAY. altogether bills which have received the sanction of both houses of congress, thereby cutting off all opportunity of passing them, even if, after their return, the members should be unanimous in their favor. The constitutional participation of the senate in the appointing power is virtually abolished by the constant use of the power of removal from office, without any known cause, and by the appointment of the same individual to the same office, after his rejection by the senate. How often have we, senators, felt that the check of the senate, instead of being, as the constitution intended, a salutary control, was an idle ceremony How often, when acting on the case of the nominated successor, have we felt the injustice of the removal How often have we said to each other, well, what can we do the office cannot remain vacant, without prejudice to the public interest, and, if we reject the proposed substitute, we cannot restore the displaced; and, perhaps, some more unworthy man may be nominated. The judiciary has not been exempt from the prevailing rage for innovation. Decisions of the tribunals, deliberately pronounced, have been contemptuously disregarded. And the sanctity of numerous treaties openly violated. Our Indian relations, coeval with the existence of the government, and recognised and estab- lished by numerous laws and treaties, have been subverted, the rights of the helpless and unfortunate aborigines trampled in the dist, and they brought under subjection to unknown laws, in which they have no voice, promulgated in an unknown language. The most extensive and most valuable public domain that ever fell to the lot of one nation, is threatened with a total sacrifice. The general currency of the country -the life-blood of all its business -is in the most imminent danger of universal disorder and confusion. The power of internal improvement lies crushed beneath the veto. The system of protection of American industry was snatched from impending destruction, at the last session; but we are now coolly told by the secretary of the treasury, without a blush, ' that it is understood to be conceded on all hands, that the tariff for protection merely is to be finally abandoned.' By the third of March, 1837, if the progress of innovation continues, there will be scarcely a vestige remaining of the government and its policy, as they existed prior to the third of March, 1829. In a term of eight years, a little more than equal to that which was required to establish our liberties, the government will have been transformed into an elective monarchy -the worst of all forms of government. Such is a melancholy but faithful picture of the present condition of our public affairs. It is not sketched or exhibited to excite, here or elsewhere, irritated feeling. I have no such purpose. I would, on the contrary, implore the senate and the people to discard all passion and prejudice, and to look calmly, but resolutely, upon the actual state of the constitution and the country. Although I bring 146 ON THE REMOVAL OF THE DEPOSITS. into the senate the same unabated spirit, and the same firm determination which have ever guided me in the support of civil liberty, and the defence of our constitution, I contemplate the prospect before us with feelings of deep humiliation and profound mortification. It is not among the least unfortunate symptoms of the times, that a large portion of the good and enlightened men of the union, of all parties, are yielding to sentiments of despondency. There is, unhappily, a feeling of distrust and insecurity pervading the community. Many of our best citizens entertain serious appre- hensions, that our union and our institutions are destined to a speedy overthrow. Sir, I trust that the hopes and confidence of the country will revive. There is much occasion for manly inde- pendence and patriotic vigor, but none for despair. Thank God, we are yet free; and, if we put on the chains which are forging for us, it will be because we deserve to wear them. We should never despair of the republic. If our ancestors had been capable of surrendering themselves to such ignoble sentiments, our inde- pendence and our liberties would never have been achieved. The winter of 1776 - 7 was one of the gloomiest periods of the revo- lution; but on this day, fifty-seven years ago, the father of his country achieved a glorious victory, which diffused joy and gladness and animation throughout the states. Let us cherish the hope that, since he has gone from among us, Providence, in the dispensation of his mercies, has near at hand in reserve for us, though yet unseen by us, some sure and happy deliverance from all impending dangers. When we assembled here last year, we were full of dreadful forebodings. On the one hand we were menaced with a civil war, which, lighting up in a single state, might spread its flames throughout one of the largest sections of the union. On the other, a cherished system of policy, essential to the successful prosecution of the industry of our countrymen, was exposed to imminent danger of immediate destruction. Means were happily applied by congress to avert both calamities; the country was reconciled, and our union once more became a band of friends and brothers. And I shall be greatly disappointed, if we do not find those who were denounced as being unfriendly to the continuance of our confed- eracy, among the foremost to fly to its preservation, and to resist all executive encroachment. Mr. President, when congress adjourned, at the termination of the last session, there was one remnant of its powers, that over the purse, left untouched. The two most important powers of civil government are, those of the sword and the purse. The first, with some restriction, is confided bv the constitution to the executive, and the last to the legislative department. If they are separate, and exercised by different responsible departments, civil liberty is safe; 147 SPEECHES OF HENRY CLAY. but if they are united in the hands of the same individual, it is gone. That clear-sighted and sagacious revolutionary orator and patriot, Patrick Henry, justly said, in the Virginia convention, in reply to one of his opponents: 'Let him candidly tell me where and when did freedom exist, when the sword and purse were given up from the people Unless a mirdcle in human affairs interposed, no nation ever retained its liberty after the loss of the sword and the purse' Can you prove by any argumentative deduction, that it is possible to be safe without one of them If you give them up you are gone! Up to the period of the termination of the last session of congress, the exclusive constitutional power of congress over the treasury of the United States had never been contested. Among its earliest acts was one to establish the treasury department, which provided for the appointment of a treasurer, who was required to give bond and security in a very large amount, ' to receive and keep the moneys of the United States and to disburse the same, upon warrants drawn by the secretary of the treasury, countersigned by the comptroller, recorded by the register, and not otherwise.' Prior to the establishment of the present bank of the United States, no treasury or place had been provided and designated by law for the safe-keeping of the public moneys, but the treasurer was left to his own discretion and respon- sibility. When the existing bank was established, it was provided that the public moneys should be deposited with it, and conse- quently that bank became the treasury of the United States. For whatever place is designated by law for the keeping of the public money of the United States, under the care of the treasurer of the United States, is for the time being the treasury. Its safety was drawn in question by the chief magistrates, and an agent was appointed, a little more than a year ago, to investigate its ability. He reported to the executive, that it was perfectly safe. His apprehensions of its solidity were communicated by the president to congress, and a committee was appointed to examine the subject. They, also, reported in favor of its security. And, finally, among the last acts of the house of representatives, prior to the close of the last session, was the adoption of a resolution, manifesting its entire confidence in the ability and solidity of the bank. After all these testimonies to the perfect safety of the public moneys, in the place appointed by congress, who could have supposed that the place would have been changed Who could have imagined, that within sixty days of the meeting of congress, and, as it wvere, in utter contempt of its authority, the change should have been ordered Who would have dreamed, that the treasurer should have thrown away the single key to the treasury, over which congress held ample control, and accepted in lieu of it some dozens of keys, over which neither congress nor he has any adequate control Yet, sir, all this has been done; and it is now 148 ON THE REMOVAL OF THE DEPOSITS. our solemn duty to inquire, first, by whose authority it has been ordered and, secondly, whether the order has been given in con- formity with the constitution and laws of the United States I agree, sir, and I am happy whenever I can agree with the president, as to the immense importance of these questions. He says, in a paper which I hold in my hand, that he looks upon the pending question as involving higher considerations than the ' mere transfer of a sum of money from one bank to another. Its decision may affect the character of our government for ages to come.' And, with him, I view it as of transcendent importance, both in its consequences and the great principles which the question involves. In the view which I have taken of this subject, I hold the bank as nothing, as perfectly insignificant, faithful as it has been in the performance of all its duties, efficient as it has proved in regulating the currency, than which there is none in all Christendom so sound, and deep as is the interest of the country in the establishment and continuance of a sound currency, and the avoidance of all those evils which result from a defective or unsettled currency. All these I regard as questions of no importance, in comparison with the principles involved in this executive innovation. It involves the distribution of power by the executive, and the taking away a power from congress which it was never before doubted to possess -the power over the public purse. Entertaining these views, I shall not, to-day, at least, examine the reasons assigned by the president, or by the secretary of the treasury; for if the president had no power to perform the act, no reasons, however cogent or strong, which he can assign as urging him to the accomplishment of his purpose, no reasons, can sanctify an unconstitutional and illegal act. The first question, sir, which I intimated it to be my purpose to examine, was, by whose direction was this change of the deposits made Now, sir, is there any man who hears me, who requires proof on this point Is there an intelligent man in the whole country who does not know who it was that decided on the removal of the deposits Is it not of universal notoriety Does any man doubt that it was the act of the president That it was done by his authority and at his command The president, on this subject, has himself furnished evidence which is perfectly conclusive, in the paper which he has read to his cabinet; for, although he has denied to the senate an official copy of that paper, it is universally admitted that he has given it to the world, as containing the reasons which influenced him to this act. As a part of the people, if not in our senatorial character, we have a right to avail ourselves of that paper, and of all which it contains. Is it not perfectly conclu- sive as to the authority by which the deposits have been removed I admit that it is an unprecedented and most extraordinary power. 149 15o SPEECHES OF IHEN'RY CLAY. The constitution of the United States admits of a call, from the chief magistrate, on the heads of departments, for their opinions in writing. It appears, indeed, that this power which the constitution confers on the president, had been exercised, and that the cabinet were divided, two and two; and one, who was ready to go on either side, being a little indifferent how this great constitutional power was settled by the president. The president was not satisfied with calling on his cabinet for their opinions, in the customary and constitutional form; but he prepares a paper of his own, and, instead of receiving reasons from them, reads to them, and thus indoctrinates them according to his own views. This, sir, is the first time in the history of our country, when a paper has been thus read, and thus published. The proceeding is entirely without precedent. Those who now exercise power, consider all precedents wrong. They hold precedents in contempt; and, casting them aside, have commenced a new era in administration. But while they thus bold all precedents in contempt, disregarding all, no matter how long established, no matter to what departments of the government they may have given sanction, they are always dis- posed to shield themselves behind a precedent, whenever they can find one to subserve their purpose. But the question is, who gave the order for the removal of the deposits By whose act were they removed from the bank of the United States, where they were required by the law to be placed, and placed in banks which the law never designated I tell the gentlemen who are opposed to me, that I am not to be answered by the exhibition of an order signed by E. Taney, or any one else. I want to know, not the clerk who makes the writing, but the individual who dictates-not the hangman. who executes the culprit, but the tribunal which orders the execution. I want the original authority, that I may know by whose order, on whose authority, the public deposits were removed, and I again ask, is there a member of this senate, is there an intelligent man in the whole country, who doubts on this point Hear what the president himself says, in his manifesto, read to his cabinet: ' The president deems it HIS duty, to communicate in this manner to his cabinet thefinal concluionos OF HIS OWN MIND, and the reasons on which they are founded,' and so forth. At the conclusion of this paper what does he say 'The president again repeats. that he begs his cabinet to consider the proposed measure as HIS OWN, in the support of which he shall require no one of them to make a sacrifice of opinion or principle. ITS RESPONSIBILITY HAS BEEN ASSUMED, after the most mature reflection, as necessary to preserve the morals of the people, the freedom of the press, and the purity of the elective franchise, without which all will unite in saying, that the blood and treasure expended by our forefathers in the establishment of our happy system of government will have Len vain and fruitless. ON THIE REMOVAL OF THE DEPOSITS. Under these convictions, he feels that a measure so important to the American people cannot be commenced too soon; and HE therefore names thefirst day of October text as a period proper for the change of the deposits, or sooner, provided the necessary arrangements with the state banks can be made.' Sir, is there a senator here who will tell me that this removal was not made by the president I know, indeed, that there are in this document many of those most mild, most gracious, most condescending expressions, with which power too well knows how to clothe its mandates. The president coaxes, he soothes the secretary, in the most bland and conciliating language: ' In the remarks he has made on this all-important question, he tnests the secretary of the treasury will see only the frank and respectful declarations of the opinions which the president has formed on a measure of great national interest, deeply affecting the character and usefulness of his administration ; and not a spirit of dicta- tion, which the president would be as careful to avoid, as ready to resist. Happy will he be, if the facts now disclosed produce uniformity of opinion and unity of action among the members of the administration.' Sir, how kind! how gentle! How very gracious must this have sounded in the gratified ear of the secretary of the treasury! Sir, it reminds me of an historical anecdote, related of one of the most remarkable characters which our species has ever produced. While Oliver Cromwell was contending for the mastery of Great Britain, or Ireland, (I do not now remember which,) he besieged a certain catholic town. The place made a stout resistance; but at length the town being likely to be taken, the poor catholics proposed terms of capitulation, stipulating therein for the toleration of their religion. The paper containing the terms was brought to Oliver, who, putting on his spectacles to read it, cried out, 'oh, granted, granted, certainly;' he added, however, 'but if one of them shall dare to be found attending mass, he shall be hanged;' (under what section is not mentioned; whether under a second, or any other section, of any particular law, we are not told.) Thus, sir, the secretary was told by the president, that he had not the slightest wish to dictate - oh, no; nothing is further from the president's intention; but, sir, what was he told in the sequel ' If you do not comply with my wishes -if you do not effect the removal of these deposits within the period I assign you-you must quit your office.' And what, sir, was the effect This document bears date on the eighteenth of September. In the official paper, published at the seat of government, and through which it is understood that the government makes known its wishes and purposes to the people of the United States, we were told, under date of the twentieth of September, 1833, two days only after this cabinet paper was read, as follows: ' We are authorized to state '- [authorized; this is the word which gave credit to this annunciation -l 'We are authorized to state, that the deposits of the public money will be changed from the bank of the United States to the state banks, as soon 151 SPEECHES OF HENRY CLAY. as necessary arrangements can be made for that purpose; and that it is believed they can be completed in Baltimore, Philadelphia, New York, and Boston, in time to make the change by thefirst of October, and perhaps sooner, if circumstances should render an earlier action necessary on the part of the government' Yes, sir, on the eighteenth of September this measure was decided on; and on the twentieth, it is announced to the people, that the deposits would be removed by the first of October, or sooner, if practicable! Mr. Duane was continued in office till the twenty-third, on which day he was dismissed; and between the twenty-third and the twenty-sixth, on which latter day the mere clerical act of signing the order for removal was performed, Mr. Taney, by whom it was done, was appointed secretary of the treasury, having conformed to the will of the president, against his own duty, which Mr. Duane would not do. Yes, sir, on the twentieth went forth this proclamation, by authority, of the removal of the deposits, although Mr. Duane remained in office till the twenty-third. On this point we have conclusive proof in a letter of the president to that gentleman, dated on the twenty-third, which letter, after all the gracious, friendly, and conciliating language of the cabinet paper, concludes in these terms: ' I feel constrained to notify you, that your further services as secretary of the treasury are no longer required.' Such, Mr. President, is the testimony on the one side to prove the truth of the proposition, that the removal of the deposits from the bank of the United States, was a measure determined on by the president himself- determined on while the latter secretary of the treasury was still in office, and against the will of the secretary; although Mr. Taney may have put his signature to the order on the twenty-sixth - a mere ministerial act, done in conformity with the previous decision of the president, that the removal should take place on or before the first of October. I now call the attention of the senate to testimony of the other party; I mean Mr. Duane. After giving a history of the circum- stances which accompanied his appointment to office, and what passed antecedently to his removal, he proceeds to say: ' Thus was I thrust into office; thus was I thrust from office; not because I had neglected any duty; not because I had differed with him about the bank of the United States; but because I refused, without further inquiry by congress, to remove the deposits.' Can testimony be more complete to establish the proposition I have advanced And is it possible, after the testimony of the president on one side, and of his secretary on the other, that the former had decided that the deposits should be removed, and had removed the secretary because he would not do it, that any man can doubt that the removal was the president's own act-that it was done in accordance with his command ON THE REMOVAl. OF THE DEPOSITS. And now, sir, having seen that the removal was made by the command and authority of the president, I shall proceed to inquire whether it was done in conformity with the constitution and laws of the United States. I do not purpose at this time to go into the reasons alleged by the president or his secretary, except so far as those reasons contain an attempt to show that he possessed the requisite authority. Because if the president of the United States had no power to do this thing -if the constitution and laws, instead of authorizing it, required him to keep his hands off the treasury -it is useless to inquire into any reasons he may give for exercising a power which he did not possess. Sir, what power has the president of the United States over the treasury Is it in the charter establishing the bank The clause of the charter relating to the public deposits declares, ' That the deposits of the money of the United States, in places in which the said bank and branches thereof may be established, shall be made in said bank or branches thereof, unless the secretary of the treasury shall at any time otherwise order and direct; in which case the secretary of the treasury shall immediately lay before congress, if in session, and if not, immediately after the commencement of the next session, the reasons of such order or direction.' This is in strict consonance with the act creating the treasury department in 1789. The secretary of the treasury is by that act constituted the agent of congress; he is required to report to congress annually the state of the finances, and his plans respecting them; and if congress in either of its branches shall require it, he is to report at any time on any particular branch of the fiscal concerns of the country. He is the agent of congress to watch over the safety of the national deposits; and if, from any peculiar circumstances, the removal of them shall be required, he is to report the fact - to whom to the president No, sir; he must report to congress, together with his reasons therefor. By the charter of the bank, the president of the United States is clothed with two powers respecting it, and two only. By one of its clauses he is authorized to nominate, and by and with the consent of the senate, to appoint the government directors, and to remove them, by the other clause he is empowered to issue a scire facias when he shall apprehend that the charter of the institution has been violated. These, I say, are the only powers given him by the charter; all others are denied to him, and are given to others. The bank is not bound to report the state of its affairs to him, but to the secretary of the treasury; and it is thus to report whenever he shall call upon it for information; but when it becomes necessary to go further, a committee of congress is authorized to examine the books of the bank, and to look into the whole state of its affairs, and to report, not to the president, but to congress, who appointed them. 153 20 VOL. 11. 1 SPEECH ES OF HENRY CLAY. The president, as I have said, is restricted to the two powers of appointing directors, and issuing a scirefacias. And has the president any power over the treasury by the consti- tution None, sir-none. The constitution requires that no money shall be drawn from the treasury except by appropriation, thus placing it entirely under the control of congress. But the president himself says; 'upon him has been devolved, by the constitution and the suffrages of the American people, the duty of superintending the operation of the executive departments of the government, and seeing that the laws are faithfully executed. ' Sir, the president, in another part of this same paper, refers to the same suifrages of the American people, as the source of some other and new powers over and above those in the constitution, or at least as expressive of their approbation of the exercise of them. Sir, I differ from the president on this point; and though it does not belong exactly in this place in the argument, I will add a remark or two on this idea. His reelection resulted from his presumed merits generally, and the confidence and attachment of the people; and from the unworthiness of his competitor; nor was it intended thereby to express their approbation of all the opinions he was known to hold. Sir, it cannot be believed that the great state of Pennsylvania, for instance, which has so justly been denominated the key-stone of our federal arch, in voting again and again for the present chief magistrate, meant by that act to reverse her own opinions on the subject of domestic industry. Sir, the truth is, that the reelection of the president proves as little an approbation by the people of all the opinions he may hold, even if he had ever unequivocally expressed what those opinions were, (a thing which he never, so far as my knowledge extends, has yet done,) as it would prove that if the president had a carbuncle or the king's evil, they meant, by reelecting him, to approve of his carbuncle. But the president says, that the duty ' has been devolved upon him,' to remove the deposits, 'by the constitution and the suffrages of the American people.' Sir, does he mean to say that these suffrages created of themselves a new source of power That he derived an authority from them which he did not hold as from any other source If he means that their suffrages made him the president of the United States, and that, as president, he may exercise every power pertaining to that office under the constitution and the laws, there are none who controvert it; but then there could be no need to add the suffrages to the constitution. But his language is, ' the suffrages of the American people and the consti- tution.' Sir, I deny it. There is not a syllable in the constitution which imposes any such duty upon him. There is nothing of any such thing; no color to the idea. It is true, that by law, all the departments, with the exception of the treasury, are placed under the general care of the president. He says this is done by the 154 ON THE REMOVAL OF THE DEPOSITS. constitution. The laws, however, have appointed but three exec- utive departments; and it is true, that the secretaries are often required by law to act in certain cases according to the directions of the president. So far it is admitted that they have been, by the law, (not by the constitution,) placed under the direction of the president. Yet, even as to the state department, there are duties devolving upon the secretary over which the president has no control; and for the non-performance of which that officer is responsible, not to the president, but to the legislative tribunals or to the courts of justice. This is no new opinion. The supreme court, in the case of Marbury and Madison, expressed it in the following terms: 'By the constitution of the United States, the president is invested with certain important political powers, in the exercise of which, he is to use his own discretion, and is accountable only to his country in his political character, and to his own conscience. To aid him in the performance of these duties, he is authorized to appoint certain officers, who act by his authority, and in conformity to his orders. 'In such cases, their acts are his acts; and whatever opinion may be entertained of the manner in which executive discretion may be used, still there exists, and can exist, no power to control that discretion. The subjects are political. They respect the nation, not individual rights, and being intrusted to the executive, the decision of the executive is conclusive. The application of this remark will be perceived by adverting to the act of congress for establishing the department of foreign affairs. This officer, as his duties were prescribed by that act, is to conform precisely to the will of the president. He is the nmere organ by whom that will is communicated. The acts of such an officer, as an officer, can never be examined by the courts. 'But when the legislature proceeds to impose on that officer other duties; when he is directed peremptorily to perform certain acts, (that is, when hie is not placed under the direction of the president,) when the rights of individuals are dependent on the performance of those acts, he is so far the officer of the law; is amenable to the laws for his conduct; and cannot at his discretion sport away the vested rights of others. ' The conclusion from this reasoning is, that where the beads of departments are the political or confidential agents of the executive, merely to execute the will of the president, or rather to act in cases in which the executive possesses a constitutional or legal discretion, nothing can be more perfectly clear than that their acts are only politically examinable. But where a specific duty is assigned by law, and individual rights depend upon the performance of that duty, it seems equally clear that the individual who considers himself injured, has a right to resort to the laws of his country for a remedy.' Though the president is mistaken in his assertion, that the constitution devolves upon the president the superintendence of the departments, there is one clause of that instrument which he has very correctly quoted, and which makes it his duty to ' see that the laws are faithfully executed,' as it is mine now to examine what authority he obtains by this clause in the case before us. Under it, the most enormous pretensions have been set up for the president. It has been contended, that if a law shall pass which the presi- dent does not conceive to be in conformity with the constitution, he is not bound to execute it; and if a treaty shall have been made, which, in his opinion, has been unconstitutional in its stipulations, he is not bound to enforce them. And it necessarily follows, that, SPEECHES OF HENRY CLAY. if the courts of justice shall give a decision, which he shall in like manner deem repugnant to the constitution, he is not expected or bound to execute that law. Sir, let us look a little into this principle, and trace it out into some of its consequences. One of the most important acts performed at the departments is, to settle those very large accounts which individuals have with the government; accounts amounting to millions of dollars; to settle them, an auditor and a comptroller have been appointed by law, whose official acts may affect, to the extent of hundreds of thousands of dollars, the property of individual contractors. If the pretensions of the president are well founded, his power goes further than he has exerted it. He may go into the office of the auditor, or the office of the comptroller, and may say to him, sir, Mr. A. B. has an account under settlement in this office, one item of which, objected to by you, I consider to be in accordance with the constitution; pass that account and send it to the auditor; and he may then go to the auditor and hold similar language. If the clause of the constitution is to be expounded, as is contended for, it amounts to a complete absorption of all the powers of govern- ment in the person of the executive. Sir, when a doctrine like this shall be admitted as orthodox, when it shall be acquiesced in by the people of this country, our government will have become a simple machine enough. The will of the president will be the whole of it. There will be but one bed, and that will be the bed of Procrustes; but one will, the will of the president. All the departments, and all subordinate functionaries of government, great or small, must submit to that will; and if they do not, then the president will have failed to 'see that the laws are faithfully executed.- Sir, such an extravagant and enormous pretension as this must be set alongside of its exploded compeer, the pretension that congress has the power of passing any and all laws which it may suppose conducive to ' the general welfare.' Let me, in a few words, present to the senate what are my own views as to the structure of this government. I hold that no powers can legitimately be exercised under it but such as are expressly delegated, and those which are necessary to carry these into effect. Sir, the executive power, as existing in this govern- ment, is not to be traced to the notions of Montesquieu, or of any other writer of that class, in the abstract nature of the executive power. Neither is the legislative nor the judicial power to be decided by any such reformer. These several powers with us, whatever they may be elsewhere, are just what the constitution has made them, and nothing more. And as to the general clauses in which reference is made to either, they are to be controlled and interpreted by those where these several powers are specially delegated, otherwise the executive will become a great vortex that 156 ON THE REMOVAL OF THE DEPOSITS. must end in swallowing up all the rest. Nor will the judicial power be any longer restrained by the restraining clauses in the constitution, which relate to its exercise. What then, it will be asked, does this clause, that the president shall see that the laws are faithfully executed, mean Sir, it means nothing more nor less than this, that if resistance is made to the laws, he shall take care that resistance shall cease. Congress, by the first article of the eighth section of the constitution, is required to provide for calling out the militia to execute the laws, in case of resistance. Sir, it might as well be contended under that clause, that congress have the power of determining what are, and what are not, the laws of the land. Congress has the power of calling out the military; well, sir, what is the president, by the constitution He is com- mander of the army and navy of the United States, and of the militia when called out into actual service. When, then, we are here told that he is clothed with the whole physical power of the nation, and when we are afterwards told, that he must take care that the laws are faithfully executed, is it possible that any man can be so lost to the love of liberty, as not to admit that this goes no further than to remove any resistance which may be made to the execution of the laws We have established a system in which power has been carefully divided among different departments of the government. And we have been told a thousand times, that this division is indispensable as a safeguard to civil liberty. We have designated the departments, and have established in each, officers to examine the power belonging to each. The president, it is true, presides over the whole; his eye surveys the whole extent of the system in all its movements. But has he power to enter into the courts, for example, and tell them what is to be done Or may he come here, and tell us the same Or when we have made a law, can he withhold the power necessary to its practical effect He moves, it is-true, in a high, a glorious sphere. It is his to watch over the whole with a paternal eye; and, when any one wheel of the vast machine is for a time interrupted by the occurrence of invasion or rebellion, it is his care to propel its movements, and to furnish it with the requisite means of performing its appropriate duty in its own place. That this is the true interpretation of the constitutional clause to which I have alluded, is inferred from the total silence of all contemporaneous expositions of that instrument on the subject. I have myself, (and when it was not in my power personally, have caused others to aid me,) made researches into the numbers of the Federalist, the debates in the Virginia convention, and in the conventions of other states, as well as all other sources of informa- tion to which I could obtain access, and I have not, in a solitary instance, found the slightest color for the claims set up in these most extraordinary times for the president, that he has authority to afford 8 SPEECIHES OF H1ENRY CLAY. or withhold at pleasure the means of enforcing the laws, and to superintend and control an officer charged with a specific duty, made by the law exclusively his. But, sir, I have found some authorities which strongly militate against any such claim. If the doctrine be indeed true, then it is most evident that there is no longer any other control over our affairs, than that exerted by the president. If it be true, that when a duty is by law specifically assigned to a particular officer, the president may go into his office and control him in the mariner of performing it, then is it most manifest that all barriers for the safety of the treasury are gone. Sir, it is that union of the purse and the sword, in the hand of one man, which constitutes the best definition of tyranny which our language can give. The charter of the bank of the United States requires that the public deposits be made in its vaults. It also gives the secretary of the treasury power to remove them -and why The secretary is at the head of the finances of the government. Weekly reports are made by the bank to him. He is to report to congress annually; and to either house whenever he should be called upon. He is the sentinel of congress-the agent of congress-the representative of congress. Congress has prescribed and has defined his duties. He is required to report to them, not to the president. He is put there by us, as our representative; he is required to remove the deposits when they shall be in danger, and we not in session; but when he does this, he is required to report to congress the fact, with his reasons for it. Now, sir, if, when an officer of government is thus specifically assigned his duty, if he is to report his official acts on his responsibility to congress; if, in a case where no power whatever is given to the president, the president may go and say to that officer, ' go and do as I bid you, or you shall be removed from office;' let me ask, whether the danger apprehended by that eloquent man has not already been realized But, sir, let me suppose that I am mistaken in my construction of the constitution; and let me suppose that the president has,. as is contended, power to see every particular law carried into effect; what, then, was it his duty to do in the present case under the clause thus interpreted The law authorized the secretary of the treasury to remove the deposits on his responsibility to congress. Now, if the president has power to see this, like other laws, faithfully executed, then, surely, the law exacted of him that he should see that the secretary was allowed to exercise his free, unbiased, uncontrolled judgment in removing or not removing them. That was the execution of the law. Congress had not said that the secretary of war, or the secretary of state, might remove the public deposits from the treasury. The president has no right to go to the secretary of war and ask 158 ON THE REMOVAL OF THE DEPOSITS. him what the secretary of the treasury ought to do. He might as well have consulted the secretary of the treasury about a contem- plated movement of the army, as to ask the secretary of war about the disposition of the public moneys. It was not to the president, and all his secretaries combined, that the power was given to alter the disposition of the deposits in the bank. It was to the secre- tary alone, exclusive of the president, and all the other officers of government. And according to gentlemen's own showing, by their construction of the clause, the secretary ought to have been left to his own unbiased determination, uncontrolled by the presi- dent or any body else. I would thank the secretary of the senate to get me the sedition law. It is not very certain how soon we may be called to act upon it. Now, sir, let us trace some of the other sources of the exercise of this power, or motives for it, or by whatever other name they are to be called. He says to Mr. Duane: 'The president repeats, that he begs the cabinet to consider the proposed measure as his own, in the support of which he shall require no one of them to make a sacri- fice of opinion or principle. Its responsibility has been assumed, after the most mature deliberation and reflection. as necessary to preserve the morals of the people, the freedom of the press, and the purity of the elective franchise.' The morals of the people! What part of the constitution has given to the president any power over 'the morals of the people' None. It does not give such power even over religion, the presi- ding and genial influence over every true system of morals. No, sir, it gives him no such power. And what is the next step To-day he claims a power as necessary to the morals of the people; to-morrow he will claim another, as still more indispensable to our religion. And the president might in this case as well have said that he went into the office of the secretary of the treasury, and controlled his free exercise of his authority as secretary, because it was necessary to preserve 'the religion of the people!' I ask for the authority. Will any one of those gentlemen here, who consider themselves as the vindicators of the executive, point me to any clause of the constitution which gives to the present president of the United States any power to preserve ' the morals of the people ' But 'the freedom of the press,' it seems, was another motive. Sir, I am not surprised that the present secretary of the treasury should feel a desire to revive this power over the press. He, I think, was a member of that party which passed the sedition law, under precisely the same pretext. I recollect it was said, that this bank, this monster of tyranny, was taking into its pay a countless number of papers, and by this means was destroying the fair fame of the president and his secretary, and all that sort of thing. Sir, 159 SPEECHES OF HENRY CLAY. it is sometimes useful to refer back to those old things -to the notions and the motives which induced men in former times to do certain acts which may not be altogether unlike some others in our own time. The famous sedition act was passed, sir, in 1789; and it con- tained, among others, the following provision: ' Section 2. That if any person shall write, print, utter. or publish, or shall cause or procure to be written, printed, uttered. or published, or shall, knowingly and wil- lingly, assist or aid in writing, printing, uttering, or publishing, any false, scandalous, and malicious writing or writings, against the government of the United States, or either house of the cor.gress of the United States, or the president of the United States, with intent to defame the said government, or either house of the said congress, or the said president, or to bring them, or either of them, into contempt or disrepute; or to excite against them, or either of them, the hatred of the good people of the United States. or to stir up sedition within the United States; or to excite any unlaw- ful combinations therein, for opposing or resisting any law of the United States, or any act of the president of the United States, done in pursuance of any such law, or of the powers in him vested by the constitution of the United States; or to resist, oppose, or defeat, any such law or act; or to aid, encourage, or abet, any hostile designs of any foreign nation, against the United States, their people, or government, then such person, being thereof convicted before any court of the United States having jurisdiction thereof, shall be punished by a fine not exceeding two thousand dollars, and by imprisonment not exceeding two years.' XVe have now, sir, in the reasons for the removal of the govern- ment deposits, the same motives avowed and acted upon. The abuse of the government, bringing it into disrepute, using con- temptuous language to persons high in authority, constituted the motives for passing the sedition law; and what have we now but a repetition of the same complaints of abuses, disrespect, and so forth. As it is now, so it was then; for, says the next section of the same sedition act: 'That if any person shall be prosecuted under this act. for the writing or publishing of any libel aforesaid, it shall be lawful for the defendant, upon the trial of the cause, to give in evidence in his defence, the truth of the matter contained in the publication charged as a libel. And the jury who shall try the cause, shall have a right to deter- mine the law and the fact, under the direction of the court, as in other cases.', It is only for the sake of the truth, said they who favored the passage of that law-for the sake of justice; as it is now said that it was necessary to remove the deposits, in order to preserve the purity of the press. That's all, sir. But there is one part of this assumption of power by the president much more tyrannical than that act. Under that law, the offending party was to have a trial by jury; the benefit of witnesses and of counsel; and the right to have the truth of his alleged libels examined. But what is the case now under consideration Why, sir, the president takes the whole matter in his own hands; he is at once the judge, the jury, and the executioner of the sentence, and utterly deprives the accused party of the opportunity of showing that the imputed libel is no libel at all, but founded in the clearest truth. 160 ON THE REMOVAL OF THE DEPOSITS. 161. But ' the purity of the elective franchise,' also, the president has very much at heart. Arid here, again, I ask what part of the con- stitution gives him any power over that ' franchise' Look, sir, at the nature of the exercise of this power! If it was really necessary that steps should be taken to preserve the purity of the press or the freedom of elections, what ought the president to have done Taken the matter into his own hands No, sir; it was his duty to recommend to congress the passage of laws for the purpose, under suitable sanctions; laws which the courts of the United States could execute. We could not have been worse off under such laws, (however exceptionable they might be,) than we are now. We could then, sir, have reviewed the laws, and seen whether congress or the president had properly any power over this matter; or whether the article of the constitution which forbids that the press shall be touched, and declares that religion shall be sacred from all the powers of legislation, applied in the case or not. This the president has undertaken to do of himself, without the shadow of authority, either in the constitution or the laws. Suppose, sir, that this contumacious institution, which committed the great sin, in 1829, of not appointing a new president to a certain one of its branches - suppose that the bank should go on and vindicate itself against the calumnies poured out upon it- that it should continue to stand upon its defence; how inefficient will have been the exercise of power by the president! How inadequate to the end he had in view, of preserving the press from being made use of to defend the bank! Why, sir, if we had had the power, and the president had come to us, we could have laid Mr. Nicholas Biddle by the heels, if he should have undertaken to publish another report of general Smith or Mr. Duffie, or another speech of the eloquent gentleman near me, (Mr. Webster,) or any other such libels, tending to bring the president or his administra- tion into disrepute. But the president of the United States, who thought he had the bank in his power, who thought he could stop it, who was induced to believe, by that 'influence behind the throne, greater than itself,' that he could break down the bank at a word, has only shown his want of power over the press, by his attempt to exercise it in the manner he has done. The bank has avowed and openly declared its purpose to defend itself on all suitable occasions. And, what is still more provoking, instead of being a bankrupt, as was expected, with its doors closed, and its vaults inaccessible, it has now, it seems, got more money than it knows what to do with; and this greatest of misers and hoarders, cruelly refuses to let out a dollar of its ten millions of specie, to relieve the sufferings of the banks to which the government deposits have been transferred. Sir, the president of the United States had nothing to do with the morals of the community. No, sir; for the preservation of our VOL. 11. 21 161 SPEECHES OF HENRY CLAY. morals we are responsible to God, and I trust that that responsi- bility will ever remain to Him and His mercy alone. Neither had the president any thing to do with the freedom of the press. The power over it is denied, even to congress, by the people. It was said, by one of those few able men and bright luminaries, whom Providence has yet spared to us, in answer to complaints by a foreign minister, against the freedom with which the American press treated certain French functionaries, that the press was one of those concerns which admitted of no regulation by the govern- ment; that its abuses must be tolerated, lest its freedom should be abridged. Such, sir, is the freedom of the press, as recognised by our constitution, and so it has been respected ever since the repeal of the obnoxious act which I have already quoted, until the detest- able principles of that law have been reasserted by the president, in his assumption of a power, in nowise belonging to his office, of preserving the purity of the press. Such, sir, are the powers on which the president relies to justify his seizure of the treasury of the United States. I have examined them one by one; and they all fail, utterly fail, to bear out the act. We are irresistibly brought to the conclusion, that the removal of the public money from the bank of the United States has been effected by the displacement from the head of the treasury department of one who would not remove them, and putting in his stead another person, who would; and, secondly, that the president has no color of authority in the constitution or the laws for the act which he has undertaken to perform. Let us now, for a few moments, examine the consequences which may ensue from the exercise of this enormous power. If the president has authority, in a case in which the law has assigned a specific duty exclusively to a designated officer, to control the exercise of his discretion by that officer, he has a right to interfere in every other case, and remove every one from office who hesi- tates to do his bidding, against his judgment of his own duty. This, surely, is a logical deduction not to be resisted. Well,' then, how stands the matter Recapitulating the provisions of the law prescribing how money should be drawn from the treasury and the deduction above stated, what is to prevent the president from going to the comptroller, and, if he will not countersign a warrant which he has found an accommodating secretary to sign, turning him out for another; then going to the register, and doing the same; and then to the treasurer, and commanding him to pay over the money expressed in the warrant, or subject himself to expulsion. Where is the security against such conduct on the part of the president Where the boundary to this tremendous authority, which he has undertaken to exercise Sir, every barrier around the treasury is broken down. From the moment that the president 162 ON THE REMOVAL OF THE DEPOSITS. said, 'I make this measure my own, I take upon myself the responsibility,' from that moment the public treasury might as well have been at the hermitage as at this place. Sir, the measure adopted by the president is without precedent - in our day at best. There is, indeed, a precedent on record, but you must go down to the christian era for it. It will be recollected, by those who are conversant with ancient history, that after Pompey was com- pelled to retire to Brundusiurn, Cwesar, who had been anxious to give him battle, returned to Rome, 'having reduced Italy, (says the historian,) in sixty days, (the exact period, sir, between the removal of the deposits, and the meeting of congress, without the usual allowance of three days' grace,) without bloodshed.' The historian goes on; 'finding the city in a more settled condition than he expected, and many senators there, he addressed them in a mild and gracious manner, (as the president addressed his late secre- tary of the treasury,) and desired them to send deputies to Pompey with an offer of honorable terms of peace. As Metellus, the tribune, opposed his taking money out of the public treasury, and cited some laws against it, (such, sir, I suppose, as I have endeavored to cite on this occasion,) Caesar said, ' arms and laws do not flourish together. If you are not pleased with what I am about, you have only to withdraw. (Leave the office, Mr. Duane!) War, indeed, will not tolerate much liberty of speech. When I say this, I am renouncing my own right; for you, and all those whom I have found exciting a spirit of faction against me, are at my disposal.' Having said this, he approached the doors of the treasury, and as the keys were not produced, he sent for workmen to break them open. Metellus again opposed him, and gained credit with some for his firmness; but Caesar, with an elevated voice, threatened to put him to death, if he gave any further trouble. 'And you know very well, young man,' said he, ' that this is harder for me to say than to do.' Metellus, terrified by the measure, retired, and Cmsar was afterward easily and readily supplied with every thing necessary for the war. And where now, sir, is the public treasury Who can tell It is certainly without a local habitation, if it be not without a name. And where is the money of the people of the United States Floating about in treasury drafts or checks to the amount of millions, placed in the hands of tottering banks, to enable them to pay their own debts, instead of being appropriated to the service of the people. These checks are scattered to the winds by the treasurer of the United States, who is required by law to let out money from the treasury, on warrants signed by the secretary of the treasury, countersigned, registered, and so forth, and not otherwise. [IMr. Clay here referred to a correspondence, which he quoted. between the treasurer and the officers of the bank, complaining of these checks drawn without 163 SPEECHES OF HENRY CLAY. proper notice, and so forth, in which the treasurer says they were only issued to be used in certain contingencies, and so forth.] Thus, sir, the people's money is put into a bank here, and the bank there, in regard to the solvency of which we know nothing, and it is placed there to be used in the event of certain contin- gencies - contingencies of which neither the treasurer nor the secretary have yet deigned to furnish us any account. Where was the oath of office of the treasurer, when he ventured thus to sport with the people's money Where was the consti- tution, which forbids money to be drawn from the treasury without appropriation by law Where was the treasurer's bond, when he thus cast about the people's money Sir, his bond is forfeited. I do not pretend to any great knowledge of the law, but give me an intelligent and unpacked jury, and I undertake to prove to him that he has forfeited the penalty of his bond. Mr. President, the people of the United States are indebted to the president for the boldness of this movement; and as one among the humblest of them, I profess my obligations to him. He has told the senate, in his message refusing an official copy of his cabinet paper, that it has been published for the information of the people. As a part of the people, the senate, if not in their official character, have a right to its use. In that extraordinary paper, he has proclaimed, that the measure is his own; and that he has taken upon himself the responsibility of it. In plain English, he has proclaimed an open, palpable, and daring usurpation! For more than fifteen years, Mr. President, I have been struggling to avoid the present state of things. I thought I perceived in some proceedings, during the conduct of the Seminole war, a spirit of defiance to the constitution and to all law. With what sincerity and truth, with what earnestness and devotion to civil liberty, I have struggled, the searcher of all human hearts best knows. With what fortune, the bleeding constitution of my country now fatally attests. I have, nevertheless, persevered; and under every discourage- ment, during the short time that I expect to remain in the public councils, I will persevere. And if a bountiful Providence would allow an unworthy sinner to approach the throne of grace, I would beseech Him, as the greatest favor He could grant to me here below, to spare me until I live to behold the people rising in their majesty, with a peaceful and constitutional exercise of their power, to expel the Goths from Rome; to rescue the public treasury from pillage, to preserve the constitution of the United States: to uphold the union against the danger of the concentration and consolidation of all power in the hands of the executive; and to sustain the liberties of the people of this country against the imminent perils to which they now stand exposed. 164 ON THE REMOVAL OF THE DEPOSITS [Here Mr. Clay, who was understood to have gone through the first part of his speech only, gave way, and Mr. Ewing of Ohio moved that the further consideration of the subject be postponed until Monday next; which was ordered accordingly. And then the senate adjourned to that day. December 30, Mr. Clay resumed his speech.] Before I proceed to a consideration of the report of the secretary of the treasury, and the second resolution, I wish to anticipate and answer an objection, which may be made to the adoption of the first. It may be urged, that the senate, being, in a certain contin- gency, a court of impeachment, ought not to prejudge a question which it may be called upon to decide judicially. But by the constitution the senate has three characters, legislative, executive, and judicial. Its ordinary, and by far its most important character, is that of its being a component part of the legislative department. Only three or four cases, since the establishment of the government, (that is, during a period of nearly half a century,) have occurred, in which it was necessary that the senate should act as a judicial tribunal, the least important of all its characters. Now it would be most strange if, when its constitutional powers were assailed, it could not assert and vindicate them, because, by possibility, it might be required to act as a court of justice. The first resolution asserts only, that the president has assumed the exercise of a power over the public treasury not granted by the constitution and laws. It is silent as to motive; and without the quo animo - the deliberate purpose of usurpation - the president would not be liable to impeachment. But if a concurrence of all the elements be neces- sary to make out a charge of wilful violation of the constitution, does any one believe that the president will now be impeached And shall we silently sit by and see ourselves stripped of one of the most essential of our legislative powers, and the exercise of it assumed by the president, to which it is not delegated, without effort to maintain it, because, against all human probability, he may be hereafter impeached The report of the secretary of the treasury, in the first paragraph, commences with a misstatement of the fact. He says, 'I have directed' that the deposits of the money of the United States shall not be made in the bank of the United States. If this assertion is regarded in any other than a mere formal sense, it is not true. The secretary may have been the instrument, the clerk, the automaton, in whose name the order was issued; but the measure was that of the president, by whose authority or command the order was given; and of this we have the highest and most authentic evidence. The president has told the world that the measure was his own, and that he took it upon his own responsibility. And he has exonerated his cabinet from all responsibility about it. The secretary ought to have frankly disclosed all the circumstances of the case, and told the truth, the whole truth, and nothing but the 165 SPEECHES OF HENRY CLAY. truth. If he had done so, he would have informed congress, that the removal had been decided by the president on the eighteenth of September last; that it had been announced to the public on the twentieth; and that Mr. Duane remained in office until the twenty-third. He would have informed congress, that this impor- tant measure was decided before he entered into his new office, and was the cause of his appointment. Yes, sir, the present secre- tary stood by, a witness to the struggle in the mind of his prede- cessor, between his attachment to the president and his duty to the country; saw him dismissed from office, because he would not violate his conscientious obligations, and came into his place, to do what he could not, honorably, and would not perform. A son of one of the fathers of democracy, by an administration professing to be democratic, was expelled from office, and his place supplied by a gentleman, who, throughout his whole career, has been uniformly opposed to democracy ! - a gentleman who, at another epoch of the republic, when it was threatened with civil war, and a dissolu- tion of the union, voted, (although a resident of a slave state,) in the legislature of Maryland, against the admission of Missouri into the union without a restriction incompatible with her rights as a member of the confederacy ! Mr. Duane was dismissed because the solemn convictions of his duty would not allow him to conform to the president's will; because his logic did not bring his mind to the same conclusions with those of the logic of a venerable old gentle- man, inhabiting a white house not distant from the capitol; because his watch, (here Mr. Clay held up his own,) did not keep time with that of the president. He was dismissed under that detesta- ble system of proscription for opinion's sake, which has finally dared to intrude itself into the halls of congress -a system under which three unoffending clerks, the husbands of wives, the fathers of families, dependent on them for support, without the slightest imputation of delinquency, have been recently unceremoniously discharged, and driven out to beggary, by a man, himself the substitute of a meritorious officer, who has not been in this city a period equal to one monthly revolution of the moon! I tell our secretary, (said Mr. Clav, raising his voice,) that, if he touch a single hair of the head of any one of the clerks of the senate, (I am sure he is not disposed to do it,) on account of his opinions, political or religious, if no other member of the senate does it, I will instantly submit a resolution for his own dismission. The secretary ought to have communicated all these things; he The following is the proceeding to which Mr. Clay referred: Resolved, by the general assembly of Maryland, that the senators and representa- tives from this state in congress, be requested to use their utmost endeavors. in the admission of the state of Missouri into the union, to prevent the prohibition of slavery from being required of that state as a condition of its admission. It passed, January, 1820, in the affirmative. Among the names of those in the negative, is that of Mr. Taney. 166 ON THE REMOVAL OF THE DEPOSITS. ought to have stated that the cabinet was divided two and two, and one of the members equally divided with himself on the question, willing to be put into either scale. He ought to have given a full account of this, the most important act of executive authority since the origin of the government; he should have stated with what unsullied honor his predecessor retired from office, and on what degrading conditions lie accepted his vacant place. When a momentous proceeding like this, varying the constitutional distri- bution of the powers of the legislative and executive departments, was resolved on, the ministers against whose advice it was deter- mined, should have resigned their stations. No ministers of any monarch in Europe, under similar circumstances, would have retained the seals of office. And if, as nobody doubts, there is a cabal behind the curtain, without character and without responsi- bility, feeding the passions, stimulating the prejudices, and moulding the actions of the incumbent of the presidential office, it was an additional reason for their resignations. There is not a maitre d'hotel in Christendom, who, if the scullions were put into command in the parlor and dining-room, would not scorn to hold his place, and fling it up in disgust with indignant pride! I shall examine the report before us, first, as to the power of the secretary over the deposits; secondly, his reasons for the exercise of it; and, thirdly, the manner of its exercise. First. The secretary asserts that the power of removal is exclu- sively reserved to him; that it is absolute and unconditional, so far as the interests of the bank are concerned; that it is not restricted to any particular contingencies; that the reservation of the power to the secretary of the treasury exclusively, is a part of the compact; that he may exercise it, if the public convenience or interest would in any degree be promoted; that this exclusive power, thus reserved, is so absolute, that the secretary is not restrained by the considera- tions that the public deposits in the bank are perfectly safe; that the bank promptly meets all demands upon it; and that it faithfully performs all its duties; and that the power of congress, on the contrary, is so totally excluded, that it could not, without a breach of the compact, order the deposits to be changed, even if congress were satisfied that they were not safe, or should be convinced that the interests of the people of the United States imperiously demanded the removal. Such is the statement which this unassuming secretary makes of his own authority. He expands his own power to the most extrav- agant dimensions; and he undertakes to circumscribe that of con- gress in the narrowest and most restricted limits! Who would have expected that, after having so confidently maintained for himself such absolute, exclusive, unqualified, and uncontrollable power, he would have let in any body else to share with him its exercise Yet he says, ' as the secretary of the treasury presides over one of 167 SPEECHES OF HENRY CLAY. the executive departments of the government, and his power over this subject forms a part of the executive duties of his office, the manner in which it is exercised must be subject to the super- vision of the officer,' (meaning the president, whose official name his modesty would not allow him to pronounce,) 'to whom the constitution has confided the whole executive power, and has required to take care that the laws be faithfully executed.' If the clause in the compact exclusively vests the power of removal in the secretary of the treasury, what has the president to do with it What part of the charter conveys to him any power If, as the secretary contends, the clause of removal, being part of the compact, restricts its exercise to the secretary, to the entire exclusion of congress, how does it embrace the president especially since both the president and secretary conceive, that ' the power over the place of deposit for the public money would seem properly to belong to the legislative department of the government' If the secretary be correct in asserting that the power of removal is confined to the secretary of the treasury, then Mr. Duane, while in office, possessed it; and his dismission, because he would not exercise a power which belonged to him exclusively, was itself a violation of the charter. But by what authority does the secretary assert that the treasury department is one of the executive departments of the government He has none in the act which creates the department; he has none in the constitution. The treasury department is placed by law on a different footing from all the other departments, which are, in the acts creating them, denominated executive, and placed under the direction of the president. The treasury department, on the contrary, is organized on totally different principles. Except the appointment of the officers, with the cooperation of the senate, and the power which is exercised of removing them, the president has neither by the constitution nor the law creating the department, any thing to do with it. The secretary's reports and responsibility are directly to congress. The whole scheme of the department is one of checks, each officer acting as a control upon his associates. The secretary is required by the law to report, not to the president, but directly to congress. Either house may require any report from him, or command his personal attendance before it. It is not, therefore, true, that the treasury is one of the executive departments, subject to the supervision of the president. And the inference drawn from that erroneous assumption entirely fails. The secre- tary appears to have no precise ideas either of the constitution or duties of the department over which he presides. He says: ' The treasury department being intrusted with the administration of the finances of the country, it was always the duty of the secretary, in the absence of any legisla- tive provision on the subject, to take care that the public money was deposited in safe-keeping, in the hands of faithful agents,' and so forth. 168 REMOVAL OF THE DEPOSITS. The premises of the secretary are only partially correct, and the conclusion is directly repugnant to law. It never was the duty of the secretary to take care that the public money was deposited in safe- keeping, in the hands of faithful agents, and so forth. That duty is expressly, by the act organizing the department, assigned to the treasurer of the United States, who is placed under oath, and under bond, with a large penalty, not to issue a dollar out of the public treasury, but in virtue of warrants granted in pursuance of acts of appropriation, ' and not otherwise.' When the secretary treats of the power of the president, he puts on corsets and prostrates himself before the executive, in the most graceful, courteous, and lady-like form; but when he treats of that of congress, and of the treasurer, he swells and expands himself, and flirts about, with all the airs of high authority. But I cannot assent to the secretary's interpretation of his power of removal, contained in the charter. Congress has not given up its control over the treasury, or the public deposits, to either the secretary or the executive. Congress could not have done so without a treacherous renunciation of its constitutional powers, and a faithless abandonment of its duties. And now let us see what is the true state of the matter. Congress has reserved to itself, exclusively, the right to judge of the reasons for removal of the deposits, by requiring the report of them to be made to it; and, consequently, the power to ratify or invalidate the act. The secre- tary of the treasury is the fiscal sentinel of congress, to whom the bank makes weekly reports, and who is presumed constantly to be well acquainted with its actual condition. He may, consequently, discover the urgent necessity of prompt action, to save the public treasure, before it is known to congress, and when it is not in session. But he is immediately to report-to whom To the executive No,to congress. Forwhat purpose That congress may sanction or disprove the act. The power of removal is a reservation for the benefit of the people, not of the bank. It may be waived. Congress, being a legislative party to the compact, did not thereby deprive itself of ordinary powers of legislation. It cannot, without a breach of the national faith, repeal privileges or stipulations intended for the benefit of the bank. But it may repeal, modify, or waive the exer- cise altogether, of those parts of the charter which were intended exclusively for the public. Could not congress repeal altogether the clause of removal Such a repeal would not injure, but add to, the security of the bank. Could not congress modify the clause, by revoking the agency of the secretary of the treasury, and substi- tuting that of the treasurer, or any other officer of government Could not copgress, at any time during the twenty years' duration of the charter, abolish altogether the office of secretary of the treasury, and assign all his present duties to some newly constituted VOL. II. 22 169 SPEECHES OF HENRY CLAY. department The right and the security of the bank do not consist in the form of the agency, nor in the name of the agent, but in this: that, whatever may be its form or his denomination, the removal shall only be made upon urgent and satisfactory reasons. The power of supplemental legislation was exercised by congress both under the new and old bank. Three years after the establishment of the existing bank, an act passed, better to regulate the election of directors, and to punish any one who should attempt, by bribes, or presents in any form, to influence the operation of the institution. The denial of the secretary, to congress, of the power to remove the deposits, under any circumstances, is most extraordinary. Why, sir, suppose a corrupt collusion between the secretary and the bank, to divide the spoils of the treasury Suppose a total nonfulfilment of all the stipulations on the part of the bank Is congress to remain bound and tied, whilst the bank should be free from all the obligations of the charter The obligation of one party, to observe faithfully his stipulations, in a contract, rests upon the corresponding obligation of the other party to observe his stipula- tions. If one party is released, both are free. If one party fails to comply with his contract, that releases the other. This is the fundamental principle of all contracts, applicable to treaties, char- ters, and private agreements. If it were a mere private agreement, and one party who had bound himself to deposit, from time to time, his money with the other, to be redrawn at his pleasure, saw that it was wasting and squandered away, he would have a clear right to discontinue the deposits. It is true, that a party has no right to excuse himself from the fulfilment of his contract, by imputing a breach to the other which has never been made. And it is fortunate for the peace and justice of society, that neither party to any contract, whether public or private, can decide conclusively the question of fulfilment by the other, but must always act under subjection to the ultimate decision, in case of controversy, of an impartial arbiter, provided in the judicial tribunals of civilized communities. As to the absolute, unconditional, and exclusive power which the secretary claims to be vested in himself, it is in direct hostility with the principles of our government, and adverse to the genius of all free institutions. The secretary was made, by the charter, the mere representative or agent of congress. Its temporary substitute, act- ing in subordination to it, and bound, whenever he did act, to report to his principal his reasons, that they might be judged of and sanctioned, or overruled. Is it not absurd to say, that the agent can possess more power than the principal The power of revocation is incident to all agency, unless, in express terms, by the instrument creating it, a different provision is made. The powers, whether of the principal or the agent, in relation to any contract, must be expounded by the principles which govern all 170 ON THE REMOVAL OF THE DEPOSITS. contracts. It is true, that the language of the clause of removal, in the charter, is general, but it is not, therefore, to be torn from the context. It is a part only of an entire compact, and is so to be interpreted, in connection with every part and with the whole. Upon surveying the entire compact, we perceive that the bank has come under various duties to the public; has undertaken to perform important financial operations of the government; and has paid a bonus into the public treasury of a million and a half of dollars. We perceive, that, in consideration of the assumption e I these heavy engagements, and the payment of that large sum of money on the part of the bank, the public has stipulated that the public deposits shall remain with the bank, during the continuation of the charter, and that its notes shall be received by the government, in payment of all debts, dues, and taxes. Except the corporate character conferred, there is none but those two stipulations of any great importance to the bank. Each of the two parties to the com- pact must stand bound to the performance of his engagements, whilst the other is honestly and faithfully fulfilling his. It is not to be conceived, in the formation of the compact, that either party could have anticipated that, whilst he was fairly and honestly executing every obligation which he had contracted, the other party might arbitrarily or capriciously exonerate himself from the dis- charge of his obligations. Suppose, when citizens of the United States were invited by the government to subscribe to the stock of this bank, that they had been told, that, although the bank performs all its covenants with perfect fidelity, the secretary of the treasury may, arbitrarily or capriciously, upon his speculative notions of any degree of public interest or convenience to be advanced, withdraw the public deposits; would they have ever subscribed Would they have been guilty of the folly of binding themselves to the performance of burdensome duties, whilst the government was left at liberty to violate at pleasure that stipula- tion of the compact which by far was the most essential to them On this part of the subject, I conclude, that congress has not parted from, but retains, its legitimate power over the deposits; that it might modify or repeal altogether the clause of removal in the charter; that a breach of material stipulations on the part of the bank would authorize congress to change the place of the deposits; that a corrupt collusion to defraud the public, between the bank and a secretary of the treasury, would be a clear justifica- tion to congress to direct a transfer of the public deposits; that the secretary of the treasury is the nmere agent of congress, in respect to the deposits, acting in subordination to his principal; that it results from the nature of all agency that it may be revoked, unless otherwise expressly provided; and, finally, that the principal, and much less the agent, of one party cannot justly or lawfully violate the compact, or any of its essential provisions, whilst the 171 SPEECHES OF HENRY CLAY. other party is in the progressive and faithful performance of all his engagements. If I am right in this view of the subject, there is an end of the argument. There was perfect equality and reciprocity between the two parties to the compact. Neither could exonerate himself from the performance of his obligations, while the other was honestly proceeding fairly to fulfil all his engagements. But the secretary of the treasury concedes that the public deposits were perfectly safe in the hands of the bank; that the bank promptly met every demand upon it; and that it faithfully performed all its duties. By these concessions, he surrenders the whole argument, admits the complete obligation of the public to perform its part of the compact, and demonstrates that no reasons, however plausible or strong, can justify an open breach of a solemn national compact. Secondly. But he has brought forward various reasons to palliate or justify his violation of the national faith; and it is now my purpose to proceed, in the second place, to examine and consider them. Before I proceed to do this, I hope to be allowed again to call the attention of the senate to the nature of the office of secre- tary of the treasury. It is altogether financial and administrative. His duties relate to the finances, their condition and improvement, and to them exclusively. The act creating the treasury department, and defining the duties of the secretary, demonstrates this. He has no legislative powers; and congress has delegated and could dele- gate none to him. His powers, wherever given, and in whatever language expressed, must be interpreted by his defined duties. Neither is the treasury department an executive department. It was expressly created not to be an executive department. It is administrative, but not executive. His relations are positive and direct to congress, by the act of his creation, and not to the presi- dent. Whenever he is put under the direction of the president, (as he is by various subsequent acts, especially those relating to the public loans,) it is done by express provision of law, and for specified purposes. With this key to the nature of the office, and the duties of the officer, I will now briefly examine the various reasons which he assigns for the removal of the public deposits. The first is, the near approach of the expiration of the charter. But the charter had yet to run about two and a half of the twenty years to which it was limited. During the whole term the public deposits were to continue to be made with the bank. It was clearly foreseen, at the commencement of the term, as now, that it would expire, and yet congress neither then nor since has ever thought proper to provide for the withdrawal of the deposits prior to the expiration of the charter. Whence does the secretary derive an authority to do what congress had never done Whence his power to abridge in effect the period of the charter, and to limit it to seventeen and a 172 ON THE REMOVAL OF THE DEPOSITS. half years, instead of twenty Was the urgency for the removal of the deposits so great, that he could not wait sixty days, until the assembling of congress He admits that they were perfectly safe in the bank; that it promptly met every demand upon it; and that it faithfully performed all its duties. Why not, then, wait the arrival of congress The last time the house of representatives had spoken, among the very last acts of the last session, that house had declared its full confidence in the safety of the deposits. Why not wait until it could review the subject, with all the new light which the secretary could throw upon it, and it again proclaims its opinion He comes into office on the twenty- third of September, 1833, and in three days, with intuitive celerity, he comprehends the whole of the operations of the complex department of the treasury, perceives, that the government, from its origin, had been in uniform error, and denounces the opinions of all his predecessors! And, hastening to rectify universal wrong, in defiance and in contempt of the resolution of the house, he signs an order for the removal of the deposits! It was of no conse- quence to him, whether places of safety, in substitution of the bank of the United States, could be obtained or not; without making the essential precautionary arrangements, he commands the removal almost instantly to be made. Why, sir, if the secretary were right in contending that he alone could order the removal, even he admits that congress has power to provide for the security of the public money, in the new places to which it might be transferred. If he did not deign to consult the representatives of the people as to the propriety of the first step, did not a decent respect to their authority and judgment exact from him a delay, for the brief term of sixty days, that they might consider what was fitting to be done The truth is, that the secretary, by law, has nothing to do with the care and safe-keeping of the public money. As has been already shown, that duty is specifically assigned by law to the treasurer of the United States. And, in assuming upon himself the authority to provide other depositories than the bank of the United States, he alike trampled upon the duties of the treasurer, and what was due to congress. Can any one doubt the motive of this precipitancy Does any- body doubt, that it was to preclude the action of congress, or to bring it under the influence of the executive veto Let the two houses, or either of them, perform their duty to the country, and we shall hereafter see whether, in that respect, at least, Mr. Secretary will not fail to consummate his purpose. Second. The next reason assigned for this offensive proceeding, is the reelection of the present chief magistrate. The secretary says: ' I have always regarded the result of the last election of president of the United States, as the declaration of a majority of the people, that the charter ought not to be renewed.' 'Its voluntary application to congress for the,renewal of its 173 SPEECHES OF HENRY CLAY. charter four years before it expired, and upon the eve of the election of president, was understood on aU sides as bringing forward that question for incidental decision at the then approaching election. It was accordingly argued on both sides before the tribunal of the people, and their verdict pronounced against the bank,' and so forth. What has the secretary to do with elections Do they belong to the financial concerns of his department Why this constant reference to the result of the last presidential election Ought not the president to be content with the triumphant issue of it Did he want still more vetoes The winners ought to forbear making any complaints, and be satisfied, whatever the losers may be. After an election is fairly terminated, I have always thought that the best way was to forget all the incidents of the preceding canvass, and especially the manner in which votes had been cast. If one has been successful, that ought to be sufficient for him; if defeated, regrets are unavailing. Our fellow-citizens have a right freely to exercise their elective franchise as they please, and no one, certainly no candidate, has any right to complain about it. But the argument of the secretary is, that the question of the bank was fully submitted to the people, by the consent of all parties, fully discussed before them, and their verdict pronounced against the institution, in the reelection of the president. His statement of the case requires that we should examine carefully the various messages of the president, to ascertain whether the bank question was fairly and frankly, (to use a favorite expression of the president,) submitted by him to the people of the United States. In his message of 1829, the president says: ' The charter of the bank of the United States expires in 1836, and its stockholders will most probably apply for a renewal of their privileges. In order to avoid the evils resulting from precipitancy in a measure involving such important principles, and such deep pecuniary interests, I feel that I cannot, in justice to the parties interested, too soon present it to the deliberate consideration of the legislature and the people.' The charter had then upwards of six years to run. Upon this solemn invitation of the chief magistrate, two years afterwards, the bank came forward with an application for renewal. Then it was discovered that the application was premature. And the bank was denounced for accepting the very invitation which had been formally given. The president proceeds: ' Both the constitutionality and the expediency of the bank are well questioned, by a lage portion of our felow-citizenas.' This message was a noncommittal. The president does not announce clearly his own opinion, but states that of a large portion of our fellow-citizens. Now we all know that a large and highly respectable number of the people of the United States have always entertained an opinion adverse to the bank on both grounds. The president continues: 174 ON THE REMOVAL OF THE DEPOSITS. 'If such an institution is deemed essential to the fiscal operations of the govern- ment, I submit to the wisdom of the legislature whether a national one, founded upon the credit of the government, and its resources, might not be devised.' Here, again, the president, so far from expressing an explicit opinion against all national banks, makes a hypothetical admission of the utility of a bank, and distinctly intimates the practicability of devising one on the basis of the credit and resources of the government. In his message of 1830, speaking of the bank, the president says: 'Nothing has occurred to lessen, in any degree, the dangers which many of our citizens apprehend from that institution, as at present organized. In the spirit of improvement and compromise, which distinguishes our country and its institutions, it becomes us to inquire whether it be not possible to secure the advantages afforded by the present bank through the agency of a bank of the United States, so modified in its principles and structure, as to obviate constitutional and other objections.' Here, again, the president recites the apprehensions of ' many of our citizens,' rather than avows his own opinion. He admits, indeed, ' the advantages afforded by the present bank,' but suggests an inquiry whether it be possible, (of course doubting,) to secure them by a bank differently constructed. And towards the conclu- sion of that part of the message, his language fully justifies the implication, that it was not to the bank itself, but to 'its present form,' that he objected. The message of 1831, when treating of the bank, was very brief. The president says: IEntertaining the opinions heretofore expressed in relation to the bank of the United States, as at present organized,' (noncommittal once more: and what that means, Mr. President, nobody better knows than you and I,) ' I felt it my duty, in my former messages, frankly to disclose them.' Frank disclosures! Now, sir, I recollect perfectly well the impressions made on my mind, and on those of other senators with whom I conversed, immediately after the message was read We thought and said to each other, the president has left a door open to pass out. It is not the bank; it is not any bank of the United States to which he is opposed, but it is to the particular organization of the existing bank. And we all concluded that, if amendments could be made to the charter satisfactory to the president, he would approve a bill for its renewal. We come now to the famous message of July, 1832, negativing the bill to recharter the bank. Here, it may be expected, we shall certainly find clear opinions, unequivocally expressed. The president cannot elude the question. He must now be perfectly frank. We shall presently see. He says: ' A bank of the United States is, in many respects, convenient to the government, and useful to the people. Entertaining this opinion, and deeply impressed with the 175 SPEECHES OF HENRY CLAY. belief that some of the powers and privileges possessed by the existing bank, are unauthorized by the constitution,' and so forth. 'I felt it my duty, at an early period of my administration, to call the attention of congress to the prac- ticability of organizing an institution, combining all its advantages, and obviating these objections. I sincerely regret, that in the act before me I can perceive none of those modifications,' and so forth. 'That a bank of the United States, competent to all the duties which may be required by the government, might be so organized as not to infringe on our own delegated powers, or the reserved rights of the states, I do not entertain a doubt. Had the executive been called on to furnish the project of such an institution, the duty would have been cheerfully performed.' The message is principally employed in discussing the objec- tions which the president entertained to the particular provisions of the charter, and not to the bank itself; such as the right of foreigners to hold stock in it; its exemption from state taxation; its capacity to hold real estate, and so forth, and so forth. Does the president, even in this message, array himself in opposition to any bank of the United States Does he even oppose himself to the existing bank under every organization of Which it is susceptible On the contrary, does he not declare that he does not entertain a doubt that a bank may be constitutionally organized Does he not even rebuke congress for not calling on him to furnish a project of a bank, which he would have cheerfully supplied Is it not fairly deducible, from the message, that the charter of the present bank might have been so amended as to have secured the president's approbation to the institution So far was the message from being decisive against all banks of the United States, or against the existing bank, under any modification, that the president expressly declares that the question was adjourned. He says: ' A general discussion will now take place, eliciting new light, and settling impor- tant principles; and a new congress, elected in the midst of such discussion, and furnishing an equal representation of the people, according to the last census, will bear to the capitol the verdict of public opinion, and I doubt not bring this important question to a satisfactory result.' This review of the various messages of the president, conclu- sively evinces that they were far from expressing, frankly and decisively, any opinions of the chief magistrate, except that he was opposed to the amendments of the charter contained in the bill submitted to him for its renewal, and that he required further amendments. It demonstrates that he entertained no doubt that it was practicable and desirable to establish a bank of the United States; it justified the hope that he might be ultimately reconciled to the continuation of the present bank, with suitable modifications; and it expressly proclaimed that the whole subject was adjourned to the new congress, to be assembled under the last census. If the parts of the messages which I have cited, or other expressions, in the same document, be doubtful, or susceptible of a different interpretation, the review is sufficient for my purpose; which is, to refute the argument, so confidently advanced, that the president's 176 ON THE REMOVAL OF THE DEPOSITS. opinion, in opposition to the present or any other bank of the United States, was frankly and fairly stated to the people, prior to the late election, was fully understood, and finally decided by them. Accordingly, in the canvass which ensued, it was boldly asserted by the partisans of the president, that he was not opposed to a bank of the United States, nor to the existing bank with proper amendments. They maintained, at least, wherever those friendly to a national bank were in the majority, that the reelection would be followed by a recharter of the bank, with proper amendments. They dwelt, it is true, with great earnestness, upon his objections to the pernicious influence of foreigners in holding stock in it; but they nevertheless contended that these objections would be cured, if he was reelected, and the bank sustained. I appeal to the whole senate, to my colleagues, to the people of Kentucky, and especially to the citizens of the city of Louisville, for the correctness of this statement. After all this, was it anticipated by the people of the United States, that, in the reelection of the president, they were deciding against an institution of such vital importance Could they have imagined, that, after an express adjournment of the whole matter to a new congress, by the president himself, he would have prejudged the action of this new congress, and pronounced that a question, expressly by himself referred to its authority, was previously settled by the people He claimed no such result in his message, imme- diately after the reelection; although in it he denounced the bank as an unsafe depository of the public money, and invited congress to investigate its condition. The president, then, and the secretary of the treasury, are without all color of justification for their asser- tions, that the question of bank or no bank -was fully and fairly submitted to the people, and a decision pronounced against it by them. Sir, I am surprised and alarmed at the new source of executive power, which is found in the result of a presidential election. I had supposed that the constitution and the laws were the sole source of executive authority; that the constitution could only be amended in the mode which it has itself prescribed; that the issue of a presidential election, was merely to place the chief magistrate in the post assigned to him; and that he had neither more nor less power, in consequence of the election, than the constitution defines and delegates. But it seems that if, prior to an election, certain opinions, no matter how ambiguously put forth by a candidate, are known to the people, these loose opinions, in virtue of the election, incorporate themselves with the constitution, and after- wards are to be regarded and expounded as parts of the instrument. Third. The public money ought not, the secretary thinks, to remain in the bank until the last moment of the existence of the charter. But that was not the question which he had to decide on VOL. 11. 23 177 7 SPEECHES OF HENRY CLAY. the twenty-sixth of September last. The real question then was, could he not wait sixty days for the meeting of congress There were many last moments, nearly two years and a half, between the twenty-sixth of September and the day of the expiration of the charter. But why not let the public money remain in the bank until the last day of the charter It is a part of the charter, that it shall so remain; and congress having so ordered it, the secretary ought to have acquiesced in the will of congress, unless the exigency had arisen on which alone it was supposed his power over the deposits would be exercised. The secretary is greatly mistaken, in believing that the bank will be less secure in the last hours of its existence than previously. It will then be collecting its resources, with a view to the immediate payment of its notes, and the ultimate division among the stockholders of their capital; and at no period of its existence will it be so strong and able to pay all demands upon it. As to the depreciation in the value of its notes in the interior, at that time, why, sir, is the secretary possessed of the least knowledge of the course of the trade of the interior, and especially of the western states If he had any, he could not have made such a suggestion. When the bank itself is not drawing, its notes form the best medium of remittance from the interior to the Atlantic capitals. They are sought after by merchants and traders with avidity, are never below par, and in the absence of bank drafts may command a premium. This will continue to be the case as long as the charter endures, and especially during the last moments of its existence, when its ability will be unquestionable, Philadelphia being the place of the redemption; whilst the notes themselves will be received in all the large cities in payment of duties. Fourth The secretary asserts, that ' it is well understood that the superior credit heretofore enjoyed by the notes of the bank of the United States, was not founded on any particular confidence in its management or solidity. It was occasioned altogether by the agree- ment on behalf of the public, in the act of incorporation, to receive them in all payments to the United States.' I have rarely seen any state paper characterized by so little gravity, dignity, and circumspec- tion, as the report displays. The secretary is perfectly reckless in his assertions of matters of fact, and culpably loose in his reasoning. Can he believe the assertion which he has made Can he believe, for example, that if the notes of the bank of the Metropolis were made receivable in all payments to the government, they would ever acquire, at home and abroad, the credit and confidence which are attached to those of the bank of the United States If he had stated that the faculty mentioned, was one of the elements of the great credit of those notes, the statement would have been true; but who can agree with him, that it is the sole cause The credit of the bank of the United States results from the large amount of its capital; from the great ability and integrity with which it has 178 , ON THE REMOVAL OF THE DEPOSITS. been administered; from the participation of the government in its affairs; from its advantageous location; from its being the place of deposit of the public moneys, and its notes being receivable in all payments to the government; and from its being emphatically the bank of the United States. This latter circumstance arranges it with the bank of England, France, Amsterdam, Genoa, and so forth. Fifth. The expansion and contraction of the accommodations of the bank to its individual customers, are held up by the secretary, in bold relief, as evidences of misconduct, which justified his with- drawal of the deposits. He represents the bank as endeavoring to operate on the public, by alternate bribery and oppression, with the same object in both cases, of influencing the election, or the admin- istration of the president. Why this perpetual reference of all the operations of the institution to the executive Why does the executive think of nothing but itself It is I! It is I! It is I, that is meant! appears to be the constant exclamation. Christianity and charity enjoin us never to ascribe a bad motive if we can suppose a good one. The bank is a moneyed corporation, whose profits result from its business; if that be extensive, it makes better; if limited, less profit. Its interest is to make the greatest amount of dividends which it can safely. And all its actions may be more certainly ascribed to that than any other principle. The administration must have a poor opinion of the virtue and intelli- gence of the people of the United States, if it supposes that their judgments are to be warped, and their opinions controlled by any scale of graduated bank accommodations. The bank must have a still poorer conception of its duty to the stockholder, if it were to regulate its issues by the uncertain and speculative standard of political effect, rather than a positive arithmetical rule for the computation of interest. As to the alleged extension of the business of the bank, it has been again and again satisfactorily accounted for by the payment of the public debt, and the withdrawal from Europe of considerable sums, which threw into its vaults a large amount of funds, which, to be productive, must be employed; and, as the commercial wants proceeding from extraordinary activity of business, created great demands about the same period for bank accommodations, the institution naturally enlarged its transactions. It would have been treacherous to the best interests of its constituents if it had not done so. The recent contraction of its business is the result of an obvious cause. Notwithstanding the confidence in it, manifested by one of the last acts of the last house of representatives, congress had scarcely left the district before measures were put in operation to circumvent its authority. Denunciations and threats were put forth against it. Rumors, stamped with but too much authority, were circulated, of the intention of the executive to disregard the 179 SPEECHES OF HENRY CLAY. admonition of the house of representatives. An agent was sent out - and then such an agent - to sound the local institutions as to the terms on which they would receive the deposits. Was the bank, who could not be ignorant of all this, to sit carelessly by, without taking any precautionary measures The prudent mariner, when he sees the coming storm, furls his sails, and pre- pares for all its rage. The bank knew that the executive was in open hostility to it, and that it had nothing to expect from its forbearance. It had numerous points to defend, the strength or weakness of all of which was well known from its weekly returns to the secretary, and it could not possibly know at which the first mortal stroke would be aimed. If, on the twentieth of September last, instead of the manifesto of the president against the bank, he had officially announced, that he did not mean to make war upon the bank, and intended to allow the public deposits to remain until the pleasure of congress was expressed, public confidence would have been assured and unshaken, the business of the country continued in quiet and prosperity, and the numerous bankruptcies in our commercial cities averted. The wisdom of human actions is better known in their results than at their inception. That of the bank is manifest from all that has happened, and especially from its actual condition of perfect security. Sixth. The secretary complains of misconduct of the bank in delegating to the committee of exchange the transaction of im- portant business, and in that committee's being appointed by the president and not the board, by which the government directors have been excluded. The directors who compose the board meet only periodically. Deriving no compensation from their places, which the charter, indeed, prohibits them from receiving, it cannot be expected that they should be constantly in session. They must, necessarily, therefore, devolve a great part of the business of the bank in its details, upon the officers and servants of the corporation. It is sufficient, if the board controls, governs, and directs the whole machine. The most important operation of a bank, is that of paying out its cash, and that the cashier or teller and not the board performs. As to committees of exchange, the board not being always in session, it is evident that the convenience of the public requires that there should be some authority at the bank daily, to pass daily upon bills, either in the sale or purchase, as the wants of the community require. Every bank, I believe, that does business to any extent, has a committee of exchange, similar to that of the bank of the United States. In regard to the mode of appointment by the president of the board, it is in conformity with the invariable usage of the house of representatives, with the practice of the senate for several years, and, until altered at the commencement of this session, with the usage, in a great variety. if not all of the state legislatures, and with that which prevails in ISO ON THE REMOVAL OF THE DEPOSITS. 181. our popular assemblies. The president, speaker, chairman, mod- erator, almost uniformly appoints committees. That none of the government directors have been on the committee of exchange, has proceeded, it is to be presumed, from their not being entitled, from their skill and experience, and standing in society, to be put there. The government directors stand upon the same equal footing with those appointed by the stockholders. When appointed, they are thrown into the mass, and must take their fair chances with their colleagues. If the president of the United States will nominate men of high character and credit, of known experience and knowl- edge in business, they will, no doubt, be placed in corresponding stations. If he appoints different men, he cannot expect it. Banks are exactly the places where currency and value are well under- stood, and duly estimated. A piece of coin, having even the stamp of the government, will not pass, unless the metal is pure. Seventh. The French bill forms another topic of great complaint with the secretary. The state of the case is, that the government sold to the bank a bill on that of France for nine hundred thousand dollars, which the bank sold in London, whence it was sent by the purchaser to Paris to receive the amount. When the bank purchased the bill, it paid the amount to the government, or, which is the same thing, passed it to the credit of the treasury, to be used on demand. The bill was protested in Paris, and the agents of the bank, to avoid its being liable to damages, took up the bill on account of the bank. The bill being dishonored, the bank comes back on the drawer, and demands the customary damages due according to the course of all such transactions. The complaint of the secretary is, that the bank took up the bill to save its own credit, and that it did not do it on account of the government; in other words, that the bank did not advance at Paris nine hundred thousand dollars to the government on account of a bill which it had already paid, every dollar, at Philadelphia. Why, sir, has the secretary read the charter If he has, he must have known that the bank could not have advanced the nine hundred thousand dollars for the government at Paris, without subjecting itself to a penalty of three times the amount, (two million and seven hundred thousand dollars.) The thirteenth section of the charter is express and positive: ' That if the said corporation shall advance or lend any sum of money for the use or on account of the government of the United States, to an amount exceeding five hundred thousand dollars, all persons concerned in making such unlawful advances or loan, shall forfeit treble the amount, one fifth to the informer,' and so forth. Eighth. The last reason which I shall notice of the secretary is, that this ambitious corporation aspires to possess political power. Those in the actual possession of power, especially when they have grossly abused it, are perpetually dreading its loss. The miser does not cling to his treasure with a more death-like grasp. Their 181 8 SPEECHES OF HENRY CLAY. suspicions are always active and on the alert. In every form they behold a rival, and every breeze comes charged with alarm and dread. A thousand spectres glide before their affrighted imagina- tions, and they see, in every attempt to enlighten those who have placed them in office, a sinister design to snatch from them their authority. On what other principles can we account for the extrav- agant charges brought forward by the secretary against the bank More groundless and reckless assertions than those which he has allowed himself to embody in his report, never were presented to a deceived, insulted, and outraged people. Suffer me, sir, to group some of them. He asserts, ' that there is sufficient evidence to prove that the bank has used its means to obtain political power; ' that, in the presideroial election, ' the bank took an open and direct interest, demonstrating that it was using its money for the purpose of obtaining a hold upon the people of this country;' that it 'entered the political arena;' that it circulated publications con- taining 'attacks on the officers of government;' that 'it is now openly in the field as a political partisan; ' that there are 'positive proofs ' of the efforts of the bank to obtain power. And, finally, he concludes, as a demonstrated proposition: 'Fourthly, that there is sufficient evidence to show that the bank has been and still is seeking to obtain political power, and has used its money for the purpose of influencing the election of the public servants.' After all this, who can doubt that this ambitious corporation is a candidate for the next presidency Or, if it can moderate its lofty pretensions, that it means at least to go for the office of secretary of the treasury, upon the next removal But, sir, where are the proofs of these political designs Can any thing be more reckless than these confident assertions of the secretary Let us have the proofs; I call for the proofs. The bank has been the constant object for years of vituperation and calumny. It has been assail- ed in every form of bitterness and malignity. Its operations have been misrepresented; attempts have been made to destroy its credit, and the public confidence in its integrity and solidity; and the char- acter of its officers has been assailed. Under these circumstances, it has dared to defend itself. It has circulated public documents, speeches of members of congress, reports made by chairmen of com- mittees, friends of the administration, and other papers. And, as it was necessary to make the defence commensurate with the duration and the extensive theatre of the attack, it has been compelled to incur a heavy expense to save itself from threatened destruction. It has openly avowed, and yet avows, its right and purpose to defend itself. All this was known to the last congress. Not a solitary material fact has been since disclosed. And when before, in a country where the press is free, was it deemed criminal for any body to defend itself Who invested the secretary of the 182 ON THE REMOVAL OF THE DEPOSITS. treasury with power to interpose himself between the people, and light and intelligence Who gave him the right to dictate what information should be communicated to the people and by whom Whence does he derive his jurisdiction Who made him censor of the public press From what new sedition law does he deduce his authority Is the superintendence of the American press a part of the financial duty of a secretary of the treasury Why did he not lay the whole case before congress, and invite the revival of the old sedition law Why anticipate the arrival of their session Why usurp the authority of the only department of government competent to apply a remedy, if there be any power to abridge the freedom of the press If the secretary wishes to purify the press, he has a most Herculean duty before him. And when he sallies out on his quixotic expedition, he had better begin with the Augean stable, the press nearest to him, his organ, as most needing purification. I have done with the secretary's reasons. They have been weighed and found wanting. There was not only no financial motive for his acting-the sole motive which he could officially entertain-but every financial consideration forbade him to act. I proceed now, in the third and last place, to examine the manner in which he has exercised his power over the deposits. Thirdly. The whole people of the United States derive an interest from the public deposits in the bank of the United States, as a stock-holder, in that institution. The bank is enabled, through its branches, to throw capital into those parts of the union where it is most needed. Thus it distributes and equalizes the advantages accruing from the collection of a large public revenue, and the consequent public deposits. Thus it neutralizes the injustice which would otherwise flow from the people of the west and the interior's paying their full proportion of the public burdens, without deriving any corresponding benefit from the circulation and deposits of the public revenue. The use of the capital of the bank has been signally beneficial to the west. We there want capital, domestic, foreign-any capital that we can honestly get. We want it to stimulate enterprise, to give activity to business, and to develope the vast resources which the bounty of Nature has concentrated in that region. But, by the secretary's financial arrangements, the twenty- five or thirty millions of the public revenue collected from all the people of the United States, (including those of the vest, ) will be retained in a few Atlantic ports. Each port will engross the public moneys there collected. And, as that of New York collects about one half of the public revenue, all the people of the United States will be laid under contribution, not for the sake of the people of the city of New York, but of two or three banks in that city, in which the people of the United States, collectively, have not a particle of interest; banks, the stock in which is or may be held by foreigners. 183 SPEECHES OF HENRY CLAY. Three months have elapsed, and the secretary has not yet found places of deposit for the public moneys, as substitutes for the bank of the United States. He tells us, in his report of yesterday, that the bank at Charleston, to which he applied for their reception, declined the custody, and that he has yet found no other bank willing to assume it. But he states that the public interest does not in consequence suffer. No! What is done with the public moneys constantly receiving in the important port of Charleston, the largest port, ( New Orleans excepted,) from the Potomac to the Gulf of Mexico What with the revenue bonds It appears that he has not yet received the charters from all the banks selected as places of deposit. Can any thing be more improvident than that the secretary should undertake to contract with banks, without knowing their power and capacity to contract by their charters That he should venture to deposit the people's money in banks, without a full knowledge of every thing respecting their actual condition But he has found some banks willing to receive the public deposits, and he has entered into contracts with them. And the very first step he has taken has been in direct violation of an express and positive statute of the United States. By the act of the first of May, 1820, section sixth, it is enacted: ' That no contract shall hereafter be made by the secretary of state, or of the treasury, or of the department of war, or of the navy, except under a law authorizing the same, or under an appropriation adequate to its fulfilment; and excepting, also, contracts for the subsistence and clothing of the army or navy, and contracts by the quarter-master's department, which may be made by the secretaries of those departments.' Now, sir, what law authorized these contracts with the local banks, made by the secretary of the treasury The argument, if I understand the argument intended to be employed on the other side, is this; that, by the bank charter, the secretary, is authorized to remove the public deposits, and that includes the power in question But the act establishing the treasury department confides, expressly, the safe-keeping of the public moneys of the United States to the treasurer of the United States, and not to the secre- tary; and the treasurer, not the secretary, gives a bond for the fidelity with which he shall keep them. The moment, therefore, that they are withdrawn from the bank of the United States, they are placed, by law, under the charge and responsibility of the treasurer and his bond, and not of the secretary who has given no bond. But let us trace this argument a little further. The power to remove the deposits, says the secretary from a given place, implies the power to designate the place to which they shall be removed. And this implied power to designate the place to which they shall be removed, implies the power to the secretary of the treasury to contract with the new banks of deposit. And, on this third link, in the chain of implications, a fourth is constructed, to 184 ON THE REMOVAL OF THE DEPOSITS. dispense with the express duties of the treasurer of the United States, defined in a positive statute; and yet a fifth, to repeal a positive statute of congress, passed four years after the passage of the law containing the present source of this most extraordinary chain of implications. The exceptions in the act of 1820, prove the inflexibility of the rule which it prescribes. Annual appropriations are made for the clothing and subsistence of the army and navy. These appropriations might have been supposed to be included in a power to contract for those articles, notwith- standing the prohibitory clause in that act. But congress thought otherwise, and therefore expressly provided for the exceptions. It must be admitted that our clerk, (as the late governor Robinson, of Louisiana, one of the purest republicans I have ever known, used to call a secretary of the treasury,) tramples with very little cere- mony upon the duties of the treasurer, and the acts of the congress of the United States, when they come in his way. These contracts, therefore, between the secretary of the treasury and the local banks are mere nullities, and absolutely void, enforceable in no court of justice whatever, for two causes; first, because they are made in violation of the act of the first of May, IS20; and, secondly, because the treasurer, and not the secretary of the treasury, alone had, if any federal officer possessed the power to contract with the local banks. And here, again, we perceive the necessity there was for avoiding the precipitancy with which the executive acted, and for awaiting the meeting of congress. Congress could have deliberately reviewed the previous legislation, decided upon the expediency of a transfer of the public deposits, and, if deemed proper, could have passed the new laws adapted to the new condition of the treasury. It could have decided whether the local banks should pay any bonus, or pay any interest, or diffuse the public deposits throughout the United States, so as to secure among all their parts, equality of benefits as well as of burdens, and provided for ample guarantees for the safety of the public moneys in their new depositories. But let us now inquire, whether the secretary of the treasury has exercised his usurped authority, in the formation of these contracts, with prudence and discretion. Having substituted himself to congress and to the treasurer of the United States, he ought at least to show that, in the stipulations of the contracts themselves, he has guarded the public moneys and provided for the public interests. I will examine the contract with the Girard bank of Philadelphia, which is presented as a specimen of the contracts with the Atlantic banks. The first stipulation limits the duty of the local banks to receive in deposit, on account of the United States, only the notes of banks convertible into coin, 'in its immediate vicinity,' or which it is, ' for the time being, in the habit of receiving.' Unaer this stipulation, the Girard bank, for example, VOL. 11. 24 185 SPEECHES OF HENRY CLAY. will not be bound to receive the notes of the Louisville bank, although that also be one of the deposit banks, 'nor the notes of any other bank, not in its immediate vicinity. As to the provision that it will receive the notes of banks which, for the time being, it is in the habit of receiving, it is absurd to put such a stipulation in a contract, because by the power retained to change the habit, for the time being, it is an absolute nullity: Now, sir, how does this compare with the charter and bank of the United States The bank receives every where, and credits the government with the notes, whether issued by the branches or the principal bank. The amount of all these notes is every where available to the government. But the government may be overflowing in distant bank notes when they are not wanted, and a bankrupt, at the places of expenditure, under this singular arrangement. With respect to the transfer of moneys from place to place, the local banks require in this contract, that it shall not take place but upon reasonable notice. And what reasonable is, has been left totally undefined, and of course open to future contest. When hereafter a transfer is ordered, and the bank is unable to make it, there is nothing to do but to allege the unreasonableness of the notice. The local bank agrees to render to the government all the services now performed by the bank of the United States, subject, however, to the restriction that they are required 'in the vicinity' of the local bank. But the bank of the United States is under no such restrictions; its services are coextensive with the United States and their territories. The local banks agree to submit their books and accounts to the secretary of the treasury, or to any agent to be appointed by him, but to be paid by the local banks pro rata, as far as such examination is admissible without a violation of their respective charters; and how far that may be, the secretary cannot tell, because he has not yet seen all the charters. He is, however, to appoint the agents of examination, and to fix the salaries which the local banks are to pay. And where does the secretary find the authority to create officers and fix their salaries, without the authority of congress But the most improvident, unprecedented, and extraordinary provision in the contract, is that which relates to the security. When, and not until the deposits in the local bank shall exceed one half of the capital stock annually paid in, collateral security, satisfactory to the secretary of the treasury, is to be given for the safety of the deposits. Why, sir, a freshman, a schoolboy, would not have thus dealt with his father's guardian's money. Instead of the security preceding, it is to follow the deposit of the people's money! That is, the local bank gets an amount of their money, equal to one half its capital, and then it coqdescends to give security! Does not the secretary know, that when he goes for the 186 ON THE REMOVAL OF THE DEPOSITS. security, the money may be gone, and that he may be entirely unable to get the one or the other! We have a law, if I mistake not, which forbids the advance of any public money, even to a disbursing agent of the government, without previous security. Yet, in violation of the spirit of that law, or, at least, of all common sense and common prudence, the secretary disperses upwards of twenty-five millions of public revenue among a countless number of unknown banks, and stipulates that, when the amount of the deposit exceeds one half of their respective capitals, security is to be given! The best stipulation in the whole contract, is the last, which reserves to the secretary of the treasury the power of discharging these local banks from the service of the United States whenever he pleases; and the sooner he exercises it, and restores the public deposits to the place of acknowledged safety, from which they have been rashly taken, the better for all parties concerned. Let us look into the condition of one of these local banks, the nearest to us, and that with respect to which we have the best information. The banks of this district (and among them that of the Metropolis) are required to make annual reports of their condi- tion on the first day of January. The latest official return from the Metropolis bank is of the first of January, 1832. Why it did not make one on the first of last January, along with the other banks, I know not. In point of fact, I am informed, it made none. Here is its account of January, 1832, and I think you will agree that it is a Flemish one. On the debit side stand capital paid in, five hundred thousand dollars. Due to the banks, twenty thousand nine hundred and eleven dollars and ten cents; individuals on deposit, seventy-four thousand nine hundred and seventy-seven dollars and forty-two cents; dividend and expenses, seventeen thousand five hundred and ninety-one dollars and seventy-seven cents; and surplus, eight thousand one hundred and thirty-one dollars and two cents; making an aggregate of six hundred and eighty-four thousand four hundred and ninety-six dollars and thirty- one cents. On the credit side, there are bills and notes discounted, and stock (what sort) bearing interest, six hundred and twenty-six thousand and eleven dollars and ninety cents; real estate, eighteen thousand four hundred and four dollars and eighty-six cents; notes of other banks on hand, and checks on the same, twenty-three thou- sand two hundred and thirteen dollars and eighty cents; specie- now, Mr. President, how much do you imagine Recollect, that this is the bank selected at the seat of government, where there is necessarily concentrated a vast amount of public money, employed in the expenditure of government. Recollect that, by another executive edict, all public officers, charged with the disbursement of the public money here, are required to make their deposits with this Metropolis; and how much specie do you suppose it had at the date of its last official return ten thousand nine hundred SPEECHES OF HENRY CLAY. and seventy-four dollars and seventy-six cents; due from other banks, five thousand eight hundred and ninety dollars and ninety- nine cents; making in the aggregate on the credit side, six hundred and eighty-four thousand four hundred and ninety-six dollars and thirty-one cents. Upon looking into the items, and casting them up, you will find that this Metropolis bank, on the first day of January, 1832, was liable to an immediate call for one hundred and seventy-six thousand three hundred and thirty-five dollars and twenty-nine cents, and that the amount wbich it had on hand, ready to meet that call, was forty thousand and seventy- nine dollars and fifty-five cents. And this is one of the banks selected at the seat of the general government, for the deposit of the public moneys of the United States. A bank with a capital of thirty millions of dollars, and upwards of ten millions of specie on hand has been put aside, and a bank with a capital of half a million, and a little more than ten thousand dollars in specie on hand, has been substituted in its place! How that half million has been raised, whether in part or in the whole, by the neutraliz- ing operation of giving stock notes in exchange for certificates of stock, does not appear. The design of the whole scheme of this treasury arrangement seems to have been, to have united in one common league a number of local banks, dispersed throughout the union, and subject to one central will, with a right of scrutiny instituted by the agents of that will. It is a bad imitation of the New York project of a safety-fund. This confederation of banks will probably be combined in sympathy as well as interest, and will be always ready to fly to the succor of the source of their nourishment. As to their supplying a common currency, in place of that of the bank of the United States, the plan is totally destitute of the essential requisite. They are not required to credit each other's paper, unless it be issued in the ' immediate vicinity.' We have seen what is in this contract. Now let us see what is. not there. It contains no stipulation for the preservation of the public morals; none for the freedom of elections; none for the purity of the press. All these great interests, after all that has been said against the bank of the United States, are left to shift and take care of themselves as they can. We have already seen the presi- dent of a bank in a neighboring city, rushing impetuously to the defence of the secretary of the treasury against an editorial article in a newspaper, although the ' venom of the shaft was quite equal to the vigor of the bow.' Was he rebuked by the secretary of the treasury Was the bank discharged from the public service Or, are morals, the press, and elections, in no danger of contamination, when a host of banks become literary champions on the side of power and the officers of government Is the patriotism of the secretary only alarmed when the infallibility of high authority is questioned Will the states silently acquiesce, and see the federal 18 ON THE REMOVA-L OF THE DEPOSITS. authority insinuating itself into banks of their creation, and subject to their exclusive control We have, Mr. President, a most wonderful financier at the head of our treasury department. He sits quietly by in the cabinet, and witnesses the contest between his colleague and the president; sees the conflict in the mind of that colleague between his personal attachment to the president on the one hand, and his solemn duty to the public on the other; beholds the triumph of conscientious obligation; contemplates the noble spectacle of an honest man, preferring to surrender an exalted office with all its honors and emoluments, rather than betray the interests of the people; witnesses the contemptuous and insulting expulsion of that colleague from office; and then coolly enters the vacated place, without the slightest sympathy or the smallest emotion. He was installed on the twenty-third of September, and by the twenty-sixth, the brief period of three days, he discovers that the government of the United States had been wrong from its origin; that every one of his prede- cessors from Hamilton down, including Gallatin, (who, whatever I said of him on a former occasion, and that I do not mean to retract, possessed more practical knowledge of currency, banks, and finance, than any man I have ever met in the public councils,) Dallas, and Crawford, had been mistaken about both the expediency and constitutionality of the bank; that every chief magistrate, prior to him whose patronage he enjoyed, had been wrong; that the supreme court of the United States, and the people of the United States, during the thirty-seven years that they had acquiesced in or recognised the utter utility of a bank, were all wrong. And, opposing his single opinion to their united judgments, he dismisses the bank, scatters the public money, and undertakes to regulate and purify the public morals, the public press, and popular elections! If we examine the operations of this modern Turgot, in their financial bearing, merely, we shall find still less for approbation. First. He withdraws the public moneys, where, by his own deliberate admission, they were perfectly safe, with a bank of thirty- five millions of capital, and ten millions of specie, and places them at great hazard with banks of comparatively small capital, and but little specie, of which the Metropolis bank is an example. Second. He withdraws them from a bank created by, and over which the federal government had ample control, and puts them in other banks, created by different governments, and over which it has no control. Third. He withdraws them from a bank in which the American people, as a stockholder, were drawing their fair proportion of interest accruing on loans, of which those deposits formed the basis, and puts them where the people of the United States draw no interest. Fourth. From a bank which has paid a bonus of a million and, a half, which the people of the United States may be now liable to 18W SPEECHES OF HENRY CLAY. refund, and puts them in banks which have paid to the American people no bonus. Fifth. Depreciates the value of stock in a bank, where the general government holds seven millions, and advances that of banks in whose stock it does not hold a dollar; and whose aggre- gate capital does not probably much exceed that very seven millions. And, finally, Sixth. He dismisses a bank whose paper circulates in the greatest credit throughout the union and in foreign countries, and engages in the public service banks whose paper has but a limited and local circulation in their ' immediate vicinities.' These are immediate and inevitable results. How much that large and long-standing item of unavailable funds, annually reported to congress, will be swelled and extended, remains to be developed by time. And now, Mr. President, what, under all these circumstances, is it our duty to do Is there a senator, who can hesitate to affirm, in the language of the resolution, that the president has assumed a dangerous power over the treasury of the United States, not granted to him by the constitution and the laws; and that the reasons assigned for the act, by the secretary of the treasury, are insufficient and unsatisfactory The eyes and the hopes of the American people are anxiously turned to congress. They feel that they have been deceived and insulted; their confidence abused; their interests betrayed; and their liberties in danger. They see a rapid and alarming concen- tration of all power in one man's hands. They see that, by the exercise of the positive authority of the executive, and his negative power exerted over congress, the will of one man alone prevails, and governs the republic. The question is no longer what laws will congress pass, but what will the executive not veto The president, and not congress, is addressed for legislative action. We have seen a corporation, charged with the execution of a great national work, dismiss an experienced, faithful, and zealous presi- dent, afterwards testify to his ability by a voluntary resolution, and reward his extraordinary services by a large gratuity, and appoint in his place an executive favorite, totally inexperienced and incom- petent, to propitiate the president. We behold the usual incidents of approaching tyranny. The land is filled with spies and informers; and detraction and denunciation are the orders of the day. People, especially official incumbents in this place, no longer dare speak in the fearless tones of manly freedom, but in the cautious whispers of trembling slaves. The premonitory symp- toms of despotism are upon us; and if congress do not apply an instantaneous and effective remedy, the fatal collapse will soon come on, and we shall die -ignobly die! base, mean, and abject slaves - the scorn and contempt of mankind - unpitied, unwept, unmourned! 190 ON THE PUBLIC DISTRESS CAUSED BY THE REMOVAL OF THE DEPOSITS. IN THE SENATE OF THE UNITED STATES, MARCH 7,1834. [THE removal of the deposits from the bank of the United States, by order of pres- ident Jackson, in October, 1833, caused great pecuniary embarrassments and distress in the commercial cities and towns of the United States, from the pernicious effect of the measure on the banks and currency. Numerous memorials were presented to congress, by the people, praying for relief. On the presentation of a memorial from Philadelphia, Mr. Clay made the brief remarks which follow, consisting principally of an eloquent appeal to the vice-president, Mr. Van Buren, to use his influence with general Jackson, to restore peace and prosperity to the country.] I HAVE been requested by the committee from Philadelphia, charged with presenting the memorial to congress, to say a few words on the subject; and although, after the ample and very satis- factory exposition which it has received from the senator from Massachusetts, further observations are entirely unnecessary, I cannot deny myself the gratification of complying with a request, proceeding from a source so highly worthy of respectful consid- eration. And what is the remedy to be provided for this most unhappy state of the country I have conversed freely with the members of the Philadelphia committee. They are real, practical, working men; intelligent, well acquainted with the general condition, and with the sufferings of their particular community. No one, who has not a heart of steel, can listen to them, without feeling the deepest sympathy for the privations and sufferings unnecessarily brought upon the laboring classes. Both the committee and the memorial declare that their reliance is, exclusively, on the legisla- tive branch of the government. Mr. President, it is with subdued feelings of the profoundest humility and mortification, that I am compelled to say, that, constituted as congress now is, no relief will be afforded by it, unless its members shall be enlightened and instructed by the people themselves. A large portion of the body, whatever may be their private judgment upon the course of the president, believe it to be their duty, at all events safest for them- SPEECHES OF HENRY CLAY. selves, to sustain him, without regard to the consequences of his measures upon the public interests. And nothing but clear, deci- ded, and unequivocal demonstrations of the popular disapprobation of what has been done, will divert them from their present purpose. But there is another quarter which possesses sufficient power and influence to relieve the public distresses. In twenty-four hours the executive branch could adopt a measure which would afford an efficacious and substantial remedy, and reestablish confidence. And those who, in this chamber, support the administration, could not render a better service than to repair to the executive mansion, and, placing before the chief magistrate the naked and undisguised truth, prevail upon him to retrace his steps and abandon his fatal experiment. No one, sir, can perform that duty with more propriety than yourself. You can, if you will, induce him to change his course. To you, then, sir, in no unfriendly spirit, but with feelings softened and subdued by the deep distress which pervades every class of our countrymen, I make the appeal. By your official and personal relations with the president, you maintain with him an intercourse which I neither enjoy nor covet. Go to him and tell him, without exaggeration, but in the language of truth and sincerity, the actual condition of his bleeding country. Tell him it is nearly ruined and undone, by the measures which he has been induced to put in operation. Tell him that his experiment is operating on the nation like the philosopher's experiment upon a convulsed animal, in an exhausted receiver, and that it must expire in agony, if he does not pause, give it free and sound circulation, and suffer the energies of the people to be revived and restored. Tell him that, in a single city, more than sixty bankruptcies, involving a loss of upwards of fifteen millions of dollars, have occurred. Tell him of the alarming decline in the value of all property, of the depreciation of all the products of industry, of the stagnation in every branch of business, and of the close of numer- ous manufacturing establishments, which, a few short months ago, were in active and flourishing operation. Depict to him, if you can find language to portray, the heart-rending wretchedness of thousands of the working classes cast out of employment. Tell him of the tears of helpless widows, no longer able to earn their bread; and of unclad and unfed orphans, who have been driven, by his policy, out of the busy pursuits in which'but yesterday they were gaining an honest livelihood. Say to him, that if firmness be honorable, when guided by truth and justice, it is intimately allied to another quality, of the most pernicious tendency, in the prosecution of an erroneous svstem. Tell him how much more true glory is to be won by retracing false steps, than by blindly rushing on until his country is overwhelmed in bankruptcy and ruin. Tell him of the ardent attachment, the unbounded devotion, the enthusiastic gratitude towards him, so often signally manifested 192 ON THE PUBLIC DISTRESS. bv the American people, and that they deserve at his hands better treatment. Tell him to guard himself against the possibility of an odious comparison, with that worst of the Roman emperors, who, contemplating with indifference the conflagration of the mistress of the world, regaled himself during the terrific scene, in the throng of his dancing courtiers. If you desire to secure for yourself the reputation of a public benefactor, describe to him truly the universal distress already produced, and the certain ruin which must ensue from perseverance in his measures. Tell him that he has been abused, deceived, betrayed, by the wicked counsels of unprincipled men around him. Inform him that all efforts in congress, to alleviate or terminate the public distress, are paralysed, and likely to prove totally unavailing, from his influence upon a large portion of the members, who are unwilling to withdraw their support, or to take a course repugnant to his wishes and feelings. Tell him that, in his bosom alone, under actual circumstances, does the power abide to relieve the country; and that, unless he opens it to conviction, and corrects the errors of his administration, no human imagination can conceive, and no human tongue can express, the awful consequences which may follow. Entreat him to pause, and to reflect that there is a point beyond which human endurance cannot go; and let him not drive this brave, generous, and patriotic people, to madness and despair. Mr. President, unaffectedly indisposed, and unwilling as I am to trespass upon the senate, I could not decline complying with a request addressed to me, by a respectable portion of my fellow- citizens, part of the bone and sinew of the American public. Like the senator from Massachusetts, who has been intrusted with the presentation of their petition to the senate, I found them plain, judicious, sensible men, clearly understanding their own interests, and, with the rest of the community, writhing under the operation of the measures of the executive. If I have deviated from the beaten track of debate in the senate, my apology must be found in the anxious solicitude which I feel for the condition of the country. And, sir, if I shall have been successful in touching your heart, and exciting in you a glow of patriotism, I shall be most happy. You can prevail upon the president to abandon his ruinous course; and, if you will exert the influence which you possess, you wvill command the thanks and the plaudits of a grateful people. VOL. II. 193 25 ON THE STATE OF THE COUNTRY FROM THE EFFECTS OF THE REMOVAL OF THE DEPOSITS. IN THE SENATE OF THE UNITED STATES, MARCH 14, 1834. [TKE following is one of the most happy and eloquent of Mr. Clay's efforts in the senate, delivered impsomptu. The pecuniary distress of the business community of the United States, brought upon them by the war of general Jackson upon the currency, particularly the removal of the deposits, induced the merchants and me- chanics to pour into the halls of congress their memorials for relief. Mr. C1,y, on presenting some of these petitions, denounces in indignant terms the tyrannical anti obstinate course of the president and his partisans, and alludes to the election in the city of New York, favorable to the whigs, as evidence of a great change in public opinion.] I AM charged with the pleasing duty of presenting to the senate the proceedings of a public meeting of the people, and two memo- rials, subscribed by large numbers of my fellow-citizens, in respect to the exciting state of public affairs. The first I would offer are the resolutions of the young men of Troy, assembled upon a call of upwards of seven hundred of their number. I have recently visited that interesting city. It is one of the most beautiful of a succession of fine cities and villages, that decorate the borders of one of the noblest rivers of our country. In spite of the shade cast upon it by its ancient and venerable sister and neighbor, it has sprung up with astonishing rapidity. When I saw it last fall, I never beheld a more respectable, active, enter- prising, and intelligent business community. Every branch of employment wvas flourishing. Every heart beat high in satisfac- tion with present enjoyment, and hopes from the prospect of future success. How sadly has the scene changed! How terribly have all their anticipations of continued and increasing prosperity been dashed and disappointed by the folly and wickedness of mis- guided rulers! The young men advert to this change, in their resolutions, and to its true cause. They denounce all experiments upon their happi- ness. They call for the safer counsels which prevailed under the auspices of Washington and Madison, both of whom gave their approbation to charters of a bank of the United States. ON THE STATE OF THE COUNTRY. But what gives to these resolutions peculiar interest, in my estimation, is, that they exhibit a tone of feeling which rises far above any loss of property, however great, any distress from the stagnation of business, however intense. They manifest a deep and patriotic sensibility to executive usurpations, and to the conse- quent danger to civil liberty. They solemnly protest against the union of the purse and the sword in the hands of one man. They would not have consented to such a union in the person of the father of his country, much less will they in that of ally living man. They feel that, when liberty is safe, the loss of fortune and property is comparatively nothing; but that when liberty is sacrificed, existence has lost all its charms. The next document which I have to offer is a memorial, signed by nearly nine hundred mechanics of the city of Troy. Several of them are personally known to me. And judging from what I know, see, and hear, I believe there is not any where a more skilful, industrious, and respectable body of mechanics, than in Troy. They bear testimony to the prevalence of distress, trace it to the illegal acts of the executive branch of the government in the removal of the public deposits; ask their restoration, and the recharter of the bank of the United States. And the committee, in their letter addressed to me, say, 'w e are, what we profess to be, working men, dependent upon our labor for our daily bread, confine our attention to our several vocations, and trust in God and the continental congress for such protection as will enable us to operate successfully.' The first-mentioned depository of their confidence will not deceive them. But I lament to say that the experience during this session, does not authorize us to anticipate that cooperation in another quarter, which is indispensable to the restoration of the constitution and laws, and the recovery of the public purse. The last memorial I would present, has been transmitted to me by the secretaries to a meeting stated to be the largest ever held in the county of Schenectady, in New York. It is signed by about eight hundred persons. In a few instances, owing to the subscrip- tions having been obtained by different individuals, the same name occurs twice. The memorialists bring their testimony to the exist- ence of distress, and the disorders of the currency, and invoke the application of the only known, tried, and certain remedy, the establishment of a national bank. And now, Mr. President, I will avail myself of the occasion to say a few words on the subject matter of these proceedings and memorials, and on the state of the country as we found it at the commencement of the session, and its present state. When we met, we found the executive in the full possession of the public treasury. All its barriers had been broken down, and in place of the control of the law was substituted the uncontrolled 195 SPEECHES OF HENRY CLAY. wvill of the chief magistrate. I say uncontrolled; for it is idle to pretend, that the executive has not unrestrained access to the public treasury, when every officer connected with it is bound to obey his paramount will. It is not the form of keeping the account; it is not the place alone where the public money is kept; but it is the power, the authority, the responsibility of independent officers, cheekina and checked by each other, that constitute the public security for the safety of the public treasure. This no longer exists, is gone, is annihilated. The secretary sent us in a report containing the reasons (if they can be dignified with that appellation) for the executive seizure of the public purse. Resolutions wvere promptly offered in this body, denouncing the procedure as unconstitutional and dangerous to liberty, and declaring the total insufficiency of the reasons. Nearly three months were consumed in the discussion of them. In the early part of this protracted debate, the supporters of distress, pronounced it a panic got up for dramatic effect, and affirmed that the country was enjoying great prosperity. Instances occurred of members asserting that the places of their own residence were in the full enjoyment of enviable and unexampled prosperity, who, in the progress of the debate, were compelled reluctantly to own their mistake, and to admit the existence of deep and intense distress. Memorial after memorial poured in, committee after committee repaired to the capitol to represent the sufferings of the people, until incredulity itself stood rebuked and abashed. Then it was the bank that had inflicted the calamity upon the country; that bank which was to be brought under the feet of the president, should proceed forthwith to wvind up its affairs. And, during the debate, it was again and again pronounced by the partisans of the executive, that the sole question involved in the resolutions was, bank or no bank. It was in vain that we protested, solemnly protested, that that was not the question; and that the true question was of immensely higher import; that it cornpre- hended the inviolability of the constitution, the supremacy of the laws, and the union of the purse and the sword in the hands of one man. In vain did members repeatedly rise in their places, and proclaim their intention to vote for the restoration of the deposits, and their settled determination to vote against the recharter of the bank, and against the charter of any bank. Gentlemen persisted in asserting the identity of the bank question, and that contained in the resolutions; and thousands of the people of the country are, to this moment, deluded by the erroneous belief in that identity. Mr. President, the arts of power and its minions are the same in all countries and in all ages. It marks a victim; denounces it; and excites the public odium and the public hatred, to conceal its own abuses and encroachments. It avails itself of the prejudice and 196 ON THE STATE OF THE COUNTRY. the passions of the people, silently and secretly to forge chains to enslave the people. Well, sir, during the continuance of the debate, we have been told, over and over again, that, let the question of the deposits be settled, let congress pass upon the report of the secretary, and the activity of business and the prosperity of the country will again speedily revive. The senate has passed upon the resolutions, and has done its duty to the country, to the constitution, and to its conscience. And the report of the secretary has been also passed upon in the other house; but how passed upon The official relations which exist between the two houses, and the expediency of preserving good feelings and harmony between them, forbid my saying all that I feel on this momentous subject. But I must say, that the house, by the constitution, is deeme1 the especial guardian of the rights and interests of the people; and, above all, the guardian of the people's money in the public treasury. The house has given the question of the sufficiency of the secretary's reasons the go-by, evaded it, shunned it, or rather merged it in the previous question. The house of representatives have not ventured to approve the secretary's reasons. It cannot approve them ; but, avoiding the true and original question, has gone off upon a subordinate and collateral point. It has indirectly sanctioned the executive usurpation. It has virtually abandoned its constitutional care and control over the public treasury. It has surrendered the keys, or rather permits the executive to retain their custody; and thus acquiesces in that conjunction of the sword and the purse of the nation, which all experience has evinced, and all patriots have believed, to be fatal to the continuance of public liberty. Such has been the extraordinary disposition of this great question. Has the promised relief come In one short week, after the house pronounced its singular decision, three banks in this District of Columbia have stopped payment and exploded. In one of them the government has, we understand, sustained a loss of thirtv thousand dollars. And in another, almost within a stone's throw of the capitol, that navy pension fund, created for our infirm and disabled, but gallant tars, which ought to be hel d sacred, has experienced an abstraction of twenty ihousand dollars! Such is the realization of the prediction of relief made by the supporters of the executive. And what is the actual state of the public treasury The president, not satisfied with the seizure of it, more than two months before the commencement of the session, appointed a second secre- tary of the treasury since the adjourumnent of the last congress. We are now in the fifth month of the session; and in defiance of the sense of the country, and in contempt of the participation of the senate in the appointing power, the president has not yet 197 SPEECHES OF HENRY CLAY. deigned to submit the nomination of his secretary to the considera- tion of the senate. Sir, I have not looked into the record, but, from the habitual practice of every previous president, from the deference and respect which they all maintained towards a coordinate branch of the government, I venture to say, that a parallel case is not to be found. Mr. President, it is a question of the highest importance, what is to be the issue, what the remedy, of the existing evils. We should deal with the people, openly, frankly, sincerely. The senate stands ready to do whatever is incumbent upon it; but unless the majority in the house will relent, unless it will take heed of and profit by recent events, there is no hope for the nation from the joint action of the two houses of congress at this session. Still, I would say to my countrymen, do not despair. You are a young, brave, intel- ligent, and as yet a free people. A complete remedy for all that you suffer, and all that you dread, is in your own hands. And the events, to which I have just alluded, demonstrate that those of us have not been deceived who have alwfays relied upon the virtue, the capacity, and the intelligence of the people. I congratulate you, Mr. President, and I hope you will receive the congratulation with the same heartfelt cordiality with which I tender it, upon the issue of the late election in the city of New York. I hope it will excite a patriotic glow in your bosom. I congratulate the senate, the country, the city of Newv York, the friends of liberty every where. It was a great victory. It must be so regarded in every aspect. From a majority of more than six thousand, which the dominant party boasted a few months ago, if it retain any, it is a meagre and spurious majority of less than two hundred. And the whigs contended with such odds against them - a triple alliance of state placernen, corporation placemen, and federal place- men, amounting to about thirty-five hundred, and deriving, in the form of salaries, compensations, and allowances, ordinary and extra, from the public chests, the enormous sum, annually, of nearly one million of dollars; marshalled, drilled, disciplined, commanded. The struggle was tremendous; but what can withstand the irre- sistible powver of the votaries of truth, liberty, and their country It was an immortal triumph - a triumph of the constitution and the laws over usurpation here, and over clubs and bludgeons and violence there. Go on, noble city! Go on, patriotic whigs! follow up your glorious commencement; persevere, and pause not until you have regenerated and disenthralled your splendid city, and placed it at the head of American cities devoted to civil liberty, as it now stands preeminently the first as the commercial emporium of our common country. Merchants, mechanics, traders, laborers, never cease to recollect, that without freedom, you can have no sure commerce or business; and that without law you have no security for personal 198 ON THE STATE OF THE COUNTRY. liberty, property, or even existence! Countrymen of Tone, of Emmet, of Macneven, and of Sampson, if any of you have been deceived, and seduced into the support of a cause dangerous to American liberty, hasten to review and correct your course! Do not forget, that you abandoned the green fields of your native island to escape what you believed the tyranny of a British king! Do not, I adjure you, lend yourselves, in this land of your asylum, this last retreatof the freedom of man, to the establishment here, for you, and for us all, of that despotism which you had proudly hoped had been left behind you, in Europe, for ever! There is much, I would fain believe, in the constitutional forms of government. But at last it is its parental and beneficent operation that must fix its character. A government may in form be free, in practice tyran- nical; as it may in form be despotic, and in practice liberal and free. It was a brilliant and signal triumph of the whigs. And they have assumed for themselves, and bestowed on their opponents, a demonstration which, according to all the analogy of history, is strictly correct. It deserves to be extended throughout the whole country. What was the origin, among our British ancestors, of those appellations The tories were the supporters of executive power, of royal prerogative, of the maxim that the king could do no -wrong, of the detestable doctrines of passive obedience and non-resistance. The whigs were the champions of liberty, the friends of the people, and the defenders of the power of their representatives in the house of comnons. During our revolutionary war, the tories took sides with execu- tive power and prerogative, and with the king, against liberty and independence. And the whigs, true to their principles, contended against royal executive power, and for freedom and independence. And what is the present but the same contest in another form The partisans of the present executive sustain his power in the most boundless extent. They claim for him all executive authority. They make his sole will the governing power. Every officer concerned in the administration, from the highest to the lowest, is to conform to his mandates. Even the public treasury, hitherto regarded as sacred, and beyond his reach, is placed by them under his entire direction and control. The whigs of the present day are opposing executive encroachment, and a most alarming extension of executive power and prerogative. They are ferreting out the abuses and corruptions of an administration, under a chief magis- trate who is endeavoring to concentrate in his own person the whole powers of government. They are contending for the rights of the people, for civil liberty, for free institutions, for the supremacy of the constitution and the laws. The contest is an arduous one; but, although the struggle may be yet awhile prolonged, by the blessing of God, and the spirit of our ancestors, the issue cannot be doubtfuL 199 SPEECHES OF HENRY CLAY. The senate stands in the breach, ready to defend the constitution, and to relieve the distresses of the people. But, without the con- currence of another branch of congress, which ought to be the first to yield it, the senate alone can send forth no act of legislation. Unaided, it can do no positive good; but it has vast preventive power. It may avert and arrest evil, if it cannot rebuke usurpation. Senators, let us remain steadily by the constitution and the country, in this most portentous crisis; let us oppose, to all encroachments and lo all corruption, a manly, resolute, and uncompromising resistance; let us adopt two rules, from which we will never deviate, in deliberating upon all nominations. In the first place, to preserve untarnished and unsuspected the purity of congress, let us negative the nominations of every member for any office, high or low, foreign or domestic, until the authority of the constitution and laws is fully restored. I know not that there is any member of either house capable of being influenced by the prospect of advancement or promotion; I would be the last to make such an insinuation; but suspicion is abroad, and it is best, in. these times of trouble and revolution, to defend the integrity of the body against all possible imputations. For one, whatever others may do, I here deliberately avow my setiled determination, whilst I retain a seat in this chamber, to act in conformity to that rule. In pursuing it, wre but act in consonance with a principle proclaimed by the present chief magistrate himself, when out of power! But, alas! how little has he respected it in power! How little has he, in office. conformed to any of the principles which he announced when out of office! And, in the next place, let us approve of the original nomination of no notorious brawling partisan and electioneerer; but, especially, of the reappointment of no officer presented to us, who shall have prostituted the influence of his office to partisan and electioneering purposes. Every incumbent has a clear right to exercise the elective franchise. I would be the last to controvert or deny it. But he has no right to employ the influence of his office, to exercise an agency which he holds in trust for the people, to promote his own selfish or party purposes. Here, also, we have the authority of the present chief magistrate for this rule; and the authority of Mr. Jefferson. The senator from Tennessee, (Mr. Grundy,) merits lasting praise for his open and manly condemnation of these practices of official incurnbents. He was right, when he declared his suspicion and distrust of the purity of the motives of any officer whom he saw busily interfering in the elections of the people. Senators! we have a highly responsible and arduous position; but the people are with us. and the path of duty lies clearly marked before us. Let us be firm, persevering, and unmoved. Let us perform our duty in a manner worthy of our ancestors; worthy of American senators; worthy of the dignity of the sovereign 200 ON THE STATE OF THE COUNTRY. 201 states that we represent; above all, worthy of the name of Amer- ican freemen! Let us 'pledge our lives, our fortunes, and our sacred honor,' to rescue our beloved country from all impending dangers. And, amidst the general gloom and darkness which prevail, let us continue to present one unextinguished light, steadily burning, in the cause of the people, of the constitution, and of civil liberty. VOL. II. 26 ON THE STATE OF THE COUNTRY. IN THE SENATE OF THE UNITED STATES, MAY 21, 1834. [TEE agitation of the public mind on the subject of the removal of the deposits from the bank of the United States, continued during the session of congress in 1834, and memorials were constantly presented to that body, asking for relief to the people from the pecuniary pressure occasioned by the arbitrary measures of president Jackson. On presenting one of these memorials, Mr. Clay made the following brief remarks.] (From the National Intelligencer of May 22.) MR. CLAY took occasion, yesterday, in presenting to the senate some memorials, and especially one from Doylestown, in Bucks county, Pennsylvania, to animadvert seriously for the most part, but in part playfully, to the present state of the country. Among the opinions expressed by the memorialists is one which Mr. Clay said he most decidedly entertained in common with them, that, after the vote by one branch of congress, that the removal of the deposits by the secretary of the treasury was unjustifiable and unconstitutional, it was the duty of the secretary of the treasury instantly to have restored the deposits to the place from which they had been illegally taken; and such, he said, would have been the course of any secretary of the treasury who entertained a proper sense of the fallibility of his own judgment, and of the respect which was due to the deliberate opinion of the senate, or of the house of representatives, on such a question as this, when it came in conflict with his own. Mr. Clay added, that if there was, in either house of congress, a single individual whose private judg- ment approved of the removal of the deposits as an original act, independently of party considerations or posterior circumstances, he had yet to meet with that man. As to the question yesterday addressed by the senator from Massachusetts, to those who hold the power, whether they meant to adjourn without taking any measure to relieve the country from its present suffering, Mr. Clay said, he verily believed that they do not know what to do; they are afraid to stay, and afraid to return; they are between two fires - afraid of Jackson if they remain, and of their constituents if they go home. If, however, they mean to do nothing to recover possession of the public treasure; if they mean to do nothing to relieve the distress which pervades the ON ThE STATE OF THE COUNTRY. country, Mr. Clay said he was himself ready to concur with there in fixing the earliest practicable day for adjournment, after passing the bills necessary to carry on the government. What would be the consequence of such contempt, by those in power, of the successive evidences of public opinion, presented from day to day, and from week to week, it was easy to foresee. Already, he said, the whole ' party Ivas crumbling away; sinking, like the banks of the Mississippi undermined by the torrent, whole acres at a time. Why, (said Mr. Clay,) I am told that the whole regency of New York, taking the alarm, has fled from Albany, and taken refuge in this city. Whether they would or would not be redemanded by governor Marcy, under the laws in such cases made and provided, he could not say; but if they remained, he hoped they would be allowed the benefit of all the rights of hospi- tality due to such distinguished strangers. For himself, he condoled with the gentlemen, in this the trying time of their misfortunes, and trusted that they would be able to bear them with manly fortitude and Christian resignation. If any one who heard this part of Mr. Clay's speech was able to look grave upon it, thank heaven, it was not we. In the course of Wednesday's debate, Mr. Clay having denounced, as contrary to the spirit of the constitution, the omission of the president of the United States to nominate to the senate, for confirmation or rejection, the present secretary of the treasury and other officers, though the senate has been now nearly six months in session; Mr. Webster rose, for the purpose of showing the views of this subject entertained by the great first president of the United States, and practiced upon by every administration in this govern- mnent, up to the beginning of the present. For this purpose, Mr. Webster quoted from the record the following: Message from the president of the United States to the senate of the United States. United States, February 9, 1790. GENTLEMEN OF THE SENATE, Among the persons appointed, during the last session, to offices under the national government, there were some who declined serving. Their names and offices are specified in the first column of the foregoing list. I supplied these vacancies, agreeably to the constitution, by temporary appointments, which you will find mentioned in the second column of the list. These appointments will expire with your present session, and indeed OUGHT NOT TO ENDURE LONGER THAN UNTIL OTHERS CAN BE REGULARLY MADE. For that purpose, I now nominate to you the persons named in the third column of the list, as being in my opinion qualified to fill the offices opposite to their names in the first. G. WASHINGTON. 203 ON OUR RELATIONS WITH FRANCE. IN THE SENATE OF THE UNITED STATES, JANUARY 14,1835. [In his annual message to congress, in December. 1834, president Jackson recomn- mended that a law should be passed, authorizing reprisals upon French property, in case provision should not be made for the payment of the claims of the United States, for aggressions upon our commerce, by France, between the years 1800 and 1817. A treaty had been concluded between the two governments, at Paris, in 1831, by which the French had agreed to pay the United States twenty-five millions of francs, for spoliations on the commerce of the latter, but the French chambers had refused to vote the necessary appropriation to execute the treaty. The president, therefore, proposed extreme measures to congress, which, if they had been approved of, by that body, would, in all human probability, have involved the two nations in war. Mr. Clay, as chairman of the committee on foreign relations, it will be seen by the following, disapproved of such a course. The controversy was finally settled through the intervention of William the fourth, king of England. Mr. Clay, from the committee on foreign relations, reported the following resolution: Resolved, that it is inexpedient, at this time, to pass any law vesting in the pres- ident authority for making reprisals upon French property, in the contingency of provision not being made for paying to the United States the indemnity stipulated by the treaty of 131, during the present session of the French chambers. The question being on agreeing to this resolution, Mr. CLAY said:] IT is not my purpose, at the present stage of consideration of this resolution, and I hope it will not be necessary at any stage, to say fiuch with the view of enforcing the arguments in its favor, which are contained in the report of the committee. In the present posture of our relations with France, the course which has appeared to me and to the committee most expedient being to await the issue of those deliberations in the French chambers which may even at this moment be going on, it would not be proper to enter at large, at the present time, into all the particulars touched upon in the report. On all questions connected with the foreign affairs of the country, differences of opinion will arise, which will finally termi- nate in whatever way the opinion of the people of this country may so tend as to influence their representatives. But, whenever the course of things shall be such that a rupture shall unfortunately take place between this country and any foreign country, (whether France or any other,) I take this opportunity of saying, that, from that moment, whatever of energy or ability, whatever of influence I may possess in my country, shall be devoted to the carrying on of ON OUR RELATIONS WITH FRANCE. that war with the utmost vigor which the arms and resources of the United States can give to it. I will not anticipate, however, such a state of things; nay, I feel very confident that such a rupture will not occur between the United States and France. With respect to the justice of our claim upon France for payment of the indemnity stipulated by the treaty, the report of the committee is in entire concurrence with the executive. The opinion of the committee is, that the claims stipulated to be paid are founded in justice; that we must pursue them; that we must finally obtain satisfaction for them, and to do so, must, if necessary, employ such means as the law of nations justifies and the constitution has placed within our power. On these points there is no diversity of senti- ment between the committee and the president; there could be no diversity between either the committee or the president and any American citizen. In all that the president has said of the obligation of the French government to make the stipulated provision for the claims, the committee entirely concur. If the president, in his message, after making his statement of the case, had stopped there, and abstained from the recommendation of any specific measure, there could not have been possibly any diversity of opinion on the subject between him and any portion of the country. But, when he declares the confidence which he entertains in the French government; when he expresses his conviction that the executive branch of that government is honest and sincere in its professions, and recites the promise by it of a renewed effort to obtain the passage of a bill of appropriation by the French chambers, it did appear to the committee inconsistent with these professions of confidence, that they should be accompanied by the recommendation of a measure which could only be authorized by the conviction that no confi- dence, or, at least, not entire confidence, could be placed in the declaration and professions of the French government. Confidence and distrust are unnatural allies. If we profess confidence any where, especially if that confidence be but for a limited period, it should be unaccompanied with any indication whatever of distrust; a confidence full, free, frank. But to say, as the president, through our minister, has said, that he will await the issue of the deliber- ations of the chambers, confiding in the sincerity of the king, and this, too, after hearing of the rejection of the first bill of appropri- ation by the chambers. and now, at the very moment when the chambers are about deliberating on the subject, to throw out in a message to congress what the president himself considered might possibly be viewed as a menace, appeared to the committee, with all due deference to the executive, and to the high and patriotic purposes which may be supposed to have induced the recomrnen- dation, to be inconsistent to such a degree as not to be seconded by the action of congress. It also appeared to the committee, after 205 SPEECHES OF HENRY CLAY. the distinct recommendation by the president on this subject, that there should be some expression of the sense of congress in regard to it. Such an expression is proposed by the resolution now under consideration. In speculating upon probabilities in regard to the course of the French government, in reference to the treaty, four contingencies might be supposed to arise-first, that the French government may have made the appropriation to carry the treaty into effect before the reception of the president's message; second, the chambers may make the appropriation after the reception of the president's message, and notwithstanding the recommendation on this subject contained in it; third, the chambers may, in consequence of that recommendation, hearing of it before they shall have acted finally on the subject, refuse to make any appropriation until what they may consider a menace shall have been explained or withdrawal; or, fourth, they may, either on that ground, or on the ground of dissatisfaction with the provisions of the treaty, refuse to pass the bill of appropriation. Now, in any of these contingencies, after what has passed, an expression of the sense of congress on the subject appears to me indispensable, either to the passage of the bill, or the subsequent payment of the money, if passed. Suppose the bill to have passed before the reception of the message, and the money to be in the French treasury, it would throw upon the king a high responsibility to pay the money, unless the recommendation of the message should be explained or done away, or at any rate unless a new motive to the execution of the treaty should be furnished in the fact that the two houses of congress, having considered the subject, had deemed it inexpedient to act until the French chambers should have had an opportunity to be heard from. In the second contingency, that of the passage of a bill of appropriation after receiving the message, a vote of congress, as proposed, would be soothing to the pride of France, and calculated to continue that good understanding which it must be the sincere desire of every citizen of the United States to cultivate with that country. If the chambers shall have passed the bill, they will see that though the president of the United States, in the prosecution of a just claim, and in the spirit of sustaining the rights of the United States, had been induced to recommend, the measure of reprisals, yet that a confidence was entertained in both branches of congress that there would be a compliance, on the part of the French government, with the pledges it had given, and so forth. In that contingency, the expression of such a sentiment by congress could not but have a happy effect. In the other contin- gency supposed, also, it is indispensable that some such measure should be adopted. Suppose the bill of appropriation to be rejected, or its passage to be suspended, until the chambers scertain whether the recomaxendation by the president im to be 206i ON OUR RELATIONS WITH FRANCE. carried out by the passage of a law by congress, a resolution like this will furnish the evidence desired of the disposition of congress. If, indeed, upon the reception of the president's message the chambers shall have refused to make the appropriation, they will have put themselves in the wrong by not attending to the distri- bution of the powers of this government, and informing themselves whether those branches which alone can give effect to the president's recommendation, would respond to it. But, if they take the other course suggested, that of suspending action on the bill until they ascertain whether the legislative department of the government coincides with the executive in the contingent measure recom- mended, they will then find that the president's recommendation- the expression of the opinion of one high in authority, indeed, having a strong hold on the affections and confidence of the people, wielding the executive power of the nation, but still an inchoate act, having no effect whatever without the legislative action-had not been responded to by congress, and so forth. Thus under all contingencies happening on the other side of the water, and adapted to any one of those contingencies, the passage of this resolution can do no mischief in any event, but is eminently calculated to prevent mischief, and to secure the very object which the president doubtless proposed to accomplish by his recom- mendation. I will not now consume any more time of the house by further remarks, but will resume my seat with the intimation of my willing- ness to modify the resolution in any manner, not changing its result, which may be calculated to secure, what on such an occasion would be so highly desirable, the unanimous vote of the senate in its favor. I believe it, however, all-essential that there should be a declaration that congress do not think it expedient, in the present state of the relations between the United States and France, to pass any law whatever concerning them. 5After brief remarks by several other members, the resolution was slightly modified an passed by a unanimous vote.] 207 ON OUR RELATIONS WITH THE CHEROKEE INDIANS. IN THE SENATE OF THE UNITED STATES, FEBRUARY 4,1835. [THE situation of the Indian tribes within the boundaries of the state of Georgia was long a subject of controversy between that state and the United States; it having been contended that the general government were bound, by former contracts with the state, to extinguish the Indian title to the lands occupied by them, and to provide for their removal therefrom, which lands were then to belong to the state. In May, 1830, a bill, providing for the removal of the Cherokees from the limits of Georgia to territories of the United States west of the Mississippi river, was passed by congress; but such was the reluctance of these Indians to remove, that, during a period of five years thereafter, only about one fourth of their number had emigrated. The suffer- irigs of those who remained, from the wrongs perpetrated upon trem by the whites, excited a deep sympathy in their behalf among the people of the United States. The Cherokees frequently sent memorials to congress, asking for relief; in presenting one of which, Mr. Clay made the following remarks, in which will be found much valu- able information on an interesting subject. His opinions and sentiments will accord with those of every philanthropist.] MR. CLAY held in his hands, and begged leave to present to the senate, certain resolutions and a memorial, to the senate and house of representatives of the United States, of a council met at Run- ning Waters, consisting of a portion of the Cherokee Indians. The Cherokees have a country -if indeed it can be any longer called their country-which is comprised within the limits of Georgia, Alabama, Tennessee, and North Carolina. They have a population which is variously estimated, but which, according to the best information which I possess, amounts to about fifteen thousand souls. Of this population a portion, believed to be much the greater part, amounting, as is estimated, to between nine and ten thousand souls, reside within the limits of the state of Georgia. The senate was well aware that for several years past it had been the policy of the general government to transfer the Indians to the west of the Mississippi river, and that a portion of the Cherokees have already availed themselves of this policy of the government, and emigrated beyond the Mississippi. Of those who remain, a portion - a respectable but also an inconsiderable portion - are desirous to emigrate to the west, and a much larger portion desire to remain on their lands, and lay their bones where rest those of their ancestors. The papers which I now present emanate from the minor portion of the Cherokees; from those who are in favor OUR RELATIONS WITH THE CHEROKEES. 209 of emigration. They present a case which appeals strongly to the sympathies of congress. They say that it is impossible for them to continue to live under laws which they do not understand, passed by authority in which they have no share, promulgated in language of which nothing is known to the greater portion of them, and estab- lishing rules for their government entirely unadapted to their nature, educatioii, and habits. They say that destruction is hanging over them if they remain; that, their right of self-government being destroyed, though they are sensible of all the privations, hardships, and suf- ferings of banishment from their native homes, they prefer exile, with liberty, to residence in their homes, with slavery. They implore, therefore, the intervention of the general government, lo provide for their removal west of the Mississippi, and to establish guaran- tees, never hereafter to be violated, of the possession of the lands to be acquired by them west of the Mississippi, and of the perpetual right of self-government. This was the object of the resolutions and petition which he was about to offer to the senate. But I have thought that this occasion was one which called upon me to express the opinions and sentiments which I hold in relaiion to this entire subject, as respects not only the emigrating Indians, but those also who are desirous to remain at home; in short, to express, in concise terms, my views of the relations between the Indian tribes and the people of the United States, the rights of both parties, and the duties of this government in regard to them. The rights of the Indians were to be ascertained in the first place, by the solemn stipulations of numerous treaties made with them by the United States. It was not his purpose to call the attention of the senate to all the treaties which had been made with Indian tribes bearing on this particular topic; hut he felt constrained to ask the attention of the senate to some portions of those treaties which have been made with the Cherokees, and to the memorable treaty of Greenville, which had terminated the war that previously thereto for many years raged between the United States and the north- western In(lian; tribes. He found, upon consulting the collection of Indian treaties in his hand, that within the last half century, fourteen different treaties had been concided with the Cherokees, the first of which bore date iln the year 1775, and some one or more of which had been concluded under every administration of the general government, from the beginning of it to the present time, except the present administration, and that which immediately preceded it. The treaty of Hopewell, the first in the series, wvas concluded in 1775, in the third article of which ' the said Indians, for themselves and their respective tribes and towns, do acknowl- edge all the Cherokees to be under the protection of the United States of America, and of no other sovereign whatsoever.' The fifth article of the same treaty provides, that ' if any citizen of the United States, or other person, not being an Indian, shall attempt VOL. UI. 27 SPEECHES OF HENRY CLAY. to settle on any of the lands westward or southward of the said boundary, which are hereby allotted to the Indians for their hunting- grounds, or, having already settled, and will not remove from the same within six months after the ratification of this treaty, such person shall forfeit the protection of the United States, and the Indians may punish him or not, as they please; provided, never- theless, that this article shall not extend to the people settled between the fork of French Broad and Holston rivers,' and so forth. The next treaty in the series, which was concluded after the establishment of the government of the United States, under the aus- pices of the father of his country, was in the year 1791, on the bank of the Holston, and contains the following provision. ' Article 7. The United States solemnly guaranty to the Cherokee nation all their lands not hereby ceded.' This, Mr. Clay said. was not an ordinary assurance of protection, and so forth, but a solemn guarartee of the rights of the Cherokees to the land in question. The next treaty to which he would call the attention of the senate was concluded in 1794, also under the auspices of general Washington, and declares as follows. ' The undersigned, Henry Knox, secretary for the department of war, being authorized thereto by the president of the United States, in behalf of the said United States, and the undersigned chiefs and warriors, in their own names, and in behalf of the whole Cherokee nation, are desirous of reestablishing peace and friendship between the said parties in a permanent manlier, do hereby declare, that the said treaty of Holston is, to all intents and purposes, in full force, and binding upon the said parties, as wvell in respect to the boundaries therein mentioned as in all other respects whatever.' This treaty, it is seen, renews the solemn guarantee contained in the preceding treaty, and declares it to be binding and obligatory upon the parties in all respects whatever. Again, in another treaty, concluded in 1798, under the second chief magistrate of the United States, we find the following stipu- latio'ns. 'Article 2. The treaties subsisting between the present contracting parties are acknowledged to be of full and operating force; together with the construction and usage under their respec- tive articles, and so to continue.' ' Article 3. The limits and boun- daries of the Cherokee nation, as stipulated and marked by the existing treaties between the parties, shall be and remain the some, where not altered by the present treaty.' There were other provisions, in other treaties, to which, if he did not intend to take up as little time as possible of the senate, he might advantageously call their attention. He would, however, pass on to one of the last treaties with the Cherokees, which was concluded in the year 1817. That treaty recognised the difference existing between the two portions of the Cherokees, one of which was desirous to remain at home and prosecute the good work of civilization, in which they had made some progress, and the other 210 OUR RELATIONS WITH THE CHEROKEES. 211 portion was desirous to go beyond the Mississippi. In that treaty, the fifth article, after several other stipulations, concludes as follows. 'And it is further stipulated, that the treaties heretofore between the Cherokee nation and the United States are to continue in full force with both parts of the nation, and both parts thereof entitled to all the privileges and immunities which the old nation enjoyed under the aforesaid treaties; the United States reserving the right of estab- lishing factories, a military post, and roads, within the boundaries above defined.' And to this treaty, thus emphatically renewing the recognition of the rights of the Indians, is signed the name, as one of the commissioners of the United States who negotiated it, of the present chief magistrate of the United States. These were the stipulations in treaties with the Cherokee nation, to which, Mr. Clay said, he thought proper to call the attention of the senate. He would now turn to the treaty of Greenville, conclu- ded about forty years ago, recognising some general principles applicable to this subject. Mr. Clay then quoted the fifth article of that treaty, as follows. ' To prevent any misunderstanding about the Indian lands relinquished by the United States in the fourth article, it is now explicitly declared, that the meaning of that relin- quishment is this: the Indian tribes who have a right to those lands are quietly to enjoy them, hunting, planting, and dwelling thereon so long as they please, without any molestation from the United States; but when those tribes, or any of them, shall be disposed to sell their lands, or any part of them, they are to be sold only to the United States; and until such sale, the United States will protect all the said Indian tribes in the quiet enjoyment of their lands against all citizens of the United States, and against all other white persons who intrude upon the same. And the said Indian tribes again acknowledge themselves to be under the protection of the said United States, and no other power whatever.' Such, sir, are the rights of the Indian tribes. And what are those rights They are, that the Indians shall live under their own customs and laws; that they shall live upon their own lands, hunting, planting, and dwelling thereon so long as they please, without interruption or molestation of any sort from the white people of the United States, acknowledging themselves under the protection of the United States, and of no other power whatever; that when they no longer wish to keep the lands, they shall sell them only to the United States, whose government thus secures to itself the preemptive right of purchase in them. These rights, so secured by successive treaties and guarantees, have also been recognised on several occasions, by the highest judicial trlbunals. Mr. Clay here quoted, from an opinion of the supreme court, a passage, declaring that the Indians are acknowledged to have an unquestionable and heretofore unquestioned right to their land, until it shall be extinguished by voluntary cession to this government. SPEECHES OF HENRY CLAY. But it is not at horne alone that the rights of the Indians within the limits of the United States have been recognised. Not only has the executive, the congress of the United States, and the supreme court, recognised these rights, but in one of the most important epochs of this government, and on one of the most solemn occasions in our intercourse with foreign powers, these rights of the Indian tribes have been acknowledged. You, sir, (addressing the president of the senate,) wvill understand me at once to refer to the negotiation between the government of Great Britain and that of the United States, which had for its object the termi- nation of the late war between the two countries. Sir, it must be within your recollection, and that of every member of the senate, that the hinge upon which that negotiation turned, the ground upon which it was for a long time apprehended that the conference between the commissioners would terminate in a rupture of the negotiation between the twvo countries, was, the claim brought forward, on that memorable occasion, by Great Britain, in behalf of the Indians within the limits of the United States. It will be recollected that she advanced, as a principle from which she would not recede, as a sine qua nan, again and again, during the progress of the negotiation, that the Indians, as her allies, should be included in the treaty of peace which the negotiators were about forming; that thev should have a permanent boundary assigned them, and that neither Great Britain nor the United States should be at liberty to purchase their lands. Such were the pretensions urged on that occasion, which the commissioners of the United States had felt it to be their impera- tive duty to resist. To establish as the boundary the line of the treaty of Greenville, as proposed, which would have excluded from the benefit of American laws and privileges a population of not less than a hundred thousand of the inhabitants of Ohio, American citizens, entitled to the protection of the government, was a propo- sitiOII which the American negotiators could not for a moment entertain; they would not even refer it to their government, though assured that it would there meet with the same unanimous rejection that it did from them. But it became a matter of somne importance that a satisfactory assurance should be given to Great Britain, that the war, which we were about to bring to a conclusion with her, should close also with her allies; and what was that assu- rance Mr. Clay said he would not trouble the senate with tracing the whole account of that negotiation, but he begged leave to call their attention to one of the passages of it. You will find on examining the history of the negotiation, that the demand brought forward by the British government through their minister, on this occasion, wvas the subject of several argumentative papers. Towards the close of this correspondence, reviewing the course pursued towards the aborigines by the several European powers 212 OUR RELATIONS WITH THE CHEROKEES. 213 which had planted colonies in America, comparing it with that of the United States, and contrasting the lenity, kindness, and forbear- ance of the United States, with the rigor and severity of other powvers, the American negotiators expressed themselves as follows. ' From the rigor of this system, however, as practiced by Great Britain, and all the other European powers in America, the humane and liberal policy of the United States has voluntarily relaxed. A celebrated writer on the law of nations, to whose authority British jurists have taken particular satisfaction in appealing, after stating, in. the most explicit manner, the legitimacy of colonial settlements in America, to the exclusion of all rights of uncivilized Indian tribes, has taken occasion to praise the first settlers of New England, and of the founder of Pennsylvania, in having purchased of the Indians the lands they resolved to cultivate, notwithstanding their being furnished with a charter from their sovereign. It is this example which the United States, since they became by their inde- pendence the sovereigns of the territory, have adopted and organized into a political system. Under that system the Indians residing in the United States are so far independent, that t1/ey live under their own customs, and not under the laws of the United States; that their rights upon the lands where they inhabit or hunt are secured to them by boundaries defined in amicable treaties between the United States and themselves; and that whenever those boundaries are varied, it is also by amicable and voluntary treaties, by which they receive from the United States ample compensation for every right they have to the lands ceded by them,' and so forth. The correspondence was further continued; and, finally, the commissioners on the part of Great Britain proposed an article to w: hich the American commissioners assented, the basis of which is, a declaration of what is the state of the law between the Indian tribes and the people of the United States. They then proposed a further article, which declared that the United States should endeavor to restore peace to the Indians who had acted on the side of Great Britain, together with all the rights, possessions, privileges, and immunities which they possessed prior to the year 1S11, that is, antecedently to the war between England and the United States; in consideration that Great Britain would terminate the war, so far as respected the Indians who had been allies of the United States, and restore to them all the rights, privileges, possessions, and immu- nities which these also had enjoyed previously to the same period. Mr. President, I here stale my solemn belief, that if the American commissioners had not declared the laws between the Indians and the people of this country, and the rights of the Indians, to6e such as they are stated to be in the extracts I have read to the senate; if they bad then stated that any one slate of this union who happened to have Indians residing within its limits, possessed the right of extending over them the laws of such state, and of taking their SPEECHES OF HENRY CLAY. lands, when and how it pleased, that the effect would have been a prolongation of the war. I again declare my most solemn belief that Great Britain, who assented with great reluctance to this mutual stipulation with respect to the Indians, never would have done it at all, but under a conviction of the correspondence of those principles of Indian international law, (if I may use such a phrase,) with those which the United States government had respected ever since the period of our independence. Sir, if I am right in this, let me ask whether in adopting the new code which now prevails, and by which the rights of the Indians have been trampled on, and the most solemn obligations of treaties have been disregarded, we are not chargeable with having induced that power to conclude a peace with us by suggestions utterly unfounded and erroneous Most of the treaties between the Cherokee nation of Indians and the United States have been submitted to the senate for ratification, and the senate have acted upon them in conformity with their constitutional power. Besides the action of the senate, as a legis- lative body, in the enactment of laws in conformity with their stip- ulalions, regulating the intercourse of our citizens with that nation, it has acted in its separate character, and confirmed the treaties themselves by the constitutional majority of two thirds of 'its members. Thus have those treaties been sanctioned by the govern- ment of the United States, and by every branch of that government; by the senate, the executive, and the supreme court; both at home and abroad. But not only have the rights of the Cherokees received all these recognitions; they have been, by implication, recognised by the state of Georgia itself, in the act of 1802, in which she stipulated that the government of the United States, and not the state of Georgia, should extinguish the Indian title to land within her limits; and the general government has been, from time to time, urged by Georgia to comply with its engagement from that period until the adoption of the late new policy upon this subject. Having thus, Mr. President, stated, as I hope with clearness, the RIGHTS of the Indian tribes, as recognised by the most solemn acts that can be entered into by any government, let me, in the next place, inquire into the nature of the INJURIES which have been inflicted upon them; in other words, into the present condition of these Cherokees, to whom protection had been assured as well by solemn treaties as by the laws and guarantees of the United States government. And here let me be permitted to say, that I go into this subject with feelings which no language at my command will enable me adequately to express. I assure the senate, and in an especial manner do I assure the honorable senators from Georgia, that my wish and purpose is any other than to excite the slightest possible irritation on the part of any human being. Far from it. I am actu- 214 OUR RELATIONS WITH THE CHEROKEES. 215 ated only by feelings of grief, feelings of sorrowv, and of profound regret, irresistibly called forth by a contemplation of the miserable condition to which these unfortunate people have been reduced by acts of legislation proceeding from one of the states of this confed- eracy. I again assure the honorable senators from Georgia. that, if it has become my painful duty to comment upon some of these acts, I do it not with any desire to place them, or the state they represent, in an invidious position; but because Georgia was, I believe, the first in the career, the object of which seems to be the utter annihilation of every Indian right, and because she has certainly, in the promotion of it, far outstripped every other state in the union. I have not before me the various acts of the state in reference to the Indians within her bounds; and it is possible I may be under some mistake in reference to them; and if I am, no one xwill correct the error more readily, or with greater pleasure. If, however, I had all those laws in my hands, I should not now attempt to read them. Instead of this, it will be sufficient for me to state the effects which have been produced by them upon the condition of the Cherokee Indians residing in that state. And here follows a list of what has been done by her legislature. Her first act was to abolish the government of these Cherokees. No human community can exist without a government of some kind; and the Cherokees, imitating our example, and having learned from us something of the principles of a free constitution, established for themselves a government somewhat resembling our own. It is quite immaterial to us what its form was. They always had had some government among them; and xwe guarantied to them the right of living under their oxwn laws and customs,unmo- lested by any one; insomuch that our own citizens were outlawed should they presume to interfere with them. What particular regulations they adopted, in the management of their humble and limited concerns, is a matter with which we have no concern. However; the very first act of the Georgia legislature was, to abolish all government of every sort among these people, and to extend the laws and government of the state of Georgia over them. The next step was to divide their territory into counties; the next, to survey the Cherokee lands; and the last, to distribute this land among the citizens of Georgia by lottery, giving to every head of a family one ticket, and the prize in land that should be drawn against it. To be sure there wvere many reservations for the heads of Indian families; and of how much did gentlemen suppose of one hundred and sixty acres only, and this to include their improve- ments. But even to this limited possession the poor Indian was to have no fee simple title; he was to hold as a mere occupant, at the -will of the state of Georgia, for just as long or as short a time as she might think proper. The laws at the same time gave him no SPEECHES OF HENRY CLAY. one political right, whatever. He could not become a member of the state legislature, nor could he hold any office under slate authority, nor could he vote as an elector. He possessed not one single right of a freeman; no; not even the poor privilege of testifying to his wrongs in the character of a witness in the courts of Georgia, or in any matter of controversy, w hatsoever. These, Mr. President, are the acts of the legislature of the state of Georgia, in relation to the Indians. They were not all passed at one session; they were enacted, time alter lime, as the state advanced further and further in her steps to the acquisition of the Indian country, and the destruction and annihilation of all Indian rights; until, by a recent act of the same body, the courts of the state itself are occluded against the Indian sufferer, and he is actually denied an appeal even to foreign tribunals, in the erection and in the laws of which he had no voice, there to complain of his wrongs. If he enters the hall of Georgia's justice, it is upon a surrender at the threshold of all his rights. The history of this last law, to which I have alluded, is this; when the previous law of the state dividing the Indian lands by lottery was passed. some Indians made an appeal to one of the judges of the state, and applied for an injunction against the proceeding; and such was the undeniable justice of their plea, that the judge found himself unable to refuse it, and he granted the injunction sought. It was that injunction which led to the passage of this act; to some of the provisions of which I now invite the attention of the senate. And first to the title of the act; ' a bill to amend an act entitled an act more effectually to provide for the government and protection of the Cherokee Indians residing within the limits of Georgia, and 10 prescribe the bounds of their occupant claims; and also to authorize grants to issue for lots drawn in the late land and gold lotteries '- ah, sir, it was the pursuit of goldf which led the Spanish invader to desolate the fair fields of Mexico and Peru -' and to provide for the appointment of an agent to carry certain parts thereof into execution; and to fix the salary of such agent, and to punish those persons who may deter Indians from enrolling for emigration, passed the twentieth of December, 1833.' Well, sir, this bill goes on to provide, ' that it shall be the duty of the agent or agents appointed by his excellency the governor, under the authority of this or the act of which it is amendatory, to report to him the number, district, and section of all lots of land subject to be granted by the provisions of said act, which he may be required to do by the drawer. or his agent, or the person claimin" the same; and it shall be the duly of his excellency the governor, upon the application of the drawer of any of the aforesaid lots, his or her special agents, or the person to whom the drawer may have boni file conveyed the same, his agent or assigns, to issue a grant therefor; and it shall be the duty of the said agent or agents, upon the production of the grant so issued as aforesaid by the grantor, 216 OUR RELATIONS WITH THE CHEROKEES. 217 his or her agent, or the person, or his or her agent to whom said land so granted as aforesaid may have been bond fide conveyed, to deliver possession of said granted lot to the said grantee, or person entitled to the possession of the same under the provisions of this act, or the act of which this is amendatory, and his excellency the governor is hereby authorized, upon satisfactory evidence that the said agent is impeded or resisted in delivering such possession, by a force which he cannot overcome, to order out a sufficient force to carry the power of said agent or agents fully into effect, and to pay the expenses of the same out of the contingent fund; provided nothing in this act shall be so construed as to require the inter- ference of the said agent between two or more individuals claiming possession, by virtue of titles derived from a grant from the state to any lot.' Thus, after the state of Georgia had distributed the lands of the Indians by lottery, and the drawers of prizes were authorized to receive grants of the land drawn, and with these grants in their band were authorized to demand of the agent of the state, appointed for the purpose, to be put in possession of the soil thus obtained; and if any resistance to their entry should be made, and who was to make it but a poor Indian the governor is empowered to turn out the military force of the state, and enable the agent to take possession by force, without trial, without judgment, and without investigation. But, should there be two claimants of the prize, should two of the ticket-holders dispute their claim to the same lot, then no military force was to be used. It was only when the resistance was by an Indian -it was only when Indian rights should come into collision with the alleged rights of the state of Georgia- that the strong hand of military power was instantly to interpose. The next section of the act is in these words: ' and be it further enacted by the authority aforesaid, that if any person dispossessed of a lot of land under this act, or the act of which it is arnendatory, shall go before a justice of the peace or of the inferior court, and make affidavit that he or she was not liable to be dispossessed under or by any of the provisions of this or the aforesaid act, and file said affidavit in the clerk's office of the superior court of the county in which said land shall lie, such person upon giving bond and security in the clerk's office for the costs to accrue on the trial, shall be permitted within ten days from such dispossessing to enter an appeal to said superior court and at said court the judge shall cause an issue to be made up between the appellant and the person to whom possession of said land was delivered by either of said agents, which said issue shall be in the following form.' [Mr. Cuthbert, of Georgia, here interposed; and having obtained Mr. Clay's consent to explain, stated that he had unfortunately not been in the senate when the honorable senator iommmewed his speech, but had learned t"t it was in puppoxt po ;5 mfeoria, VOL. II. 28 SPEECHES OF HENRY CLAY. from certain Cherokee Indians in the state of Georgia, who desired to emigrate. He must be permitted to say, that the current of the honorable senator's remarks did not suit remarkably well the subject of such a memorial. A memorial of a different kind had been presented, and which the committee on Indian affairs had before it, to which the senator's remarks would better apply. The present discussion was wholly unex- pected, and it seemed to him not in consistency with the object of the memorial he had presented.] Mr. Clay replied, that he was truly sorry the honorable gentle- man had been absent when he commenced speaking. He had delayed presenting the memorial, because he observed that neither of the senators from Georgia was in his seat, until the hour when they might be expected to be present, and when one of them, (Mr. King,) had actually taken his seat. If the honorable senator had been present he would have heard Mr. Clay say that he thought the presentation of the memorial a fit occasion to express his senti- ments, not only touching the rights of these individual petitioners, but on the rights of all the Indian tribes, and their relations to this government. And if he would have but a little patience he would find that it was Mr. Clay's intention to present propositions which went to embrace both resolutions. Mr. Clay now resumed the course of his speech. And here, Mr. President, let me pause, and invite the attention of the senate to the provision in the act of Georgia which I was reading, (the substance of which Mr. Clay here repeated,) that is, that he may have the privilege of an appeal to a tribunal of justice by forms and by a bond with the nature and force of which he is unac- quainted; and that then he may have-what beside I invoke the attention of the senate to this part of the law. What, I ask, does it secure to the Indian His rights the rights recog- nised by treaties the rights guarantied to him by the most solemn acts which human governments can perform No. It allows him to come into the courts of the state, and there to enjoy the benefit of the summary proceeding called in the act 'an appeal,' but which can never be continued beyond a second term; and when he comes there, what then He shall be permitted to come into court and enter an appeal, which shall be in the following form. ' A. B., who was dispossessed of a lot of land by an agent of the state of Georgia, comes into court, and,admitting the right of the state of Georgia to pass the law under which agent acted, avers that he was not liable to be dispossessed of said land, by or under any one of the provisions of the act of the general assembly of Georgia, passed the twentieth of December, 1833, 'more effectually to provide for the protection of the Cherokee Indians residing within the limits of Georgia, and to prescribe the bounds of their occupant claims, and also to authorize grants to issue for lots drawn in the land and gold lotteries in certain cases, and to provide for the appointment of an agent to carry certain parts thereof into execution. and fix the salary of such agent, and to punish those persons who may deter Indians from enrolling for emigration,' or the act amendatory thereof, passed at the session of the legislature of 1834: ' in which issue the person to whom possession of said land was delivered shall join; and which issue shall constitute the entire pleadings between the parties; nor shall the court allow any matter other than is contained in said issue to be placed upon the record or Ales of said court; and said cause shall be tried at the first term of the court, unless 218 OUR RELATIONS WITH THE CHEROKEES. 219 good cause shall be shown for a continuance, and the same party shall not be permitted to continue said cause more than once, except for unavoidable providential cause; nor shall said court at the instance of either party pass any order or grant any injunction to stay said cause, nor permit to be engrafted on said cause any other proceedings, whatever.'' At the same time, we find, by another enactment, the judges of the courts of Georgia are restrained from granting injunctions, so that the only form in which the Indian can come before them, is in the form of an appeal; and in this, the very first step is an absolute renunciation of the rights he holds by treaty, and the unqualified admission of the rights of his antagonist, as conferred by the laws of Georgia; and the court is expressly prohibited from putting any thing else upon the record. Why do we not all know the reason If the poor Indian was allowed to put in a plea stating his rights, and the court should then decide against him, the cause would go upon an appeal to the supreme court; the decision could be reex- amined, could be annulled, and the authority of treaties vindicated. But, to prevent this, to make it impossible, he is compelled, on entering the court, to renounce his Indian rights, and the court is forbidden to put any thing on record which can bring up a decision upon them. Mr. President, I have already stated that, in the observations I have made, I am actuated by no other feelings than such as ought to be in the breast of every honest man, the feelings of common justice. I would say nothing, I would whisper nothing, I would insinuate nothing, I would think nothing, which can, in the remo- test degree, cause irritation in the mind of any one, of any senator here, of any state in this union; I have too much respect for every member of the confederacy. I feel nothing but grief for the wretched condition of these most unfortunate people, and every emotion of my bosom dissuades me from the use of epithets that might raise emotions which should draw the attention of the senate from the justice of their claims. I forbear to apply to this law any epithet of any kind. Sir, no epithet is needed. The features of the law itself; its warrant for the interposition of military power, when no trial and no judgment has been allowed; its denial of any appeal, unless the unhappy Indian shall first renounce his own rights, and admit the rights of his opponent; features such as these are enough to show what the true character of the act is, and supersede the necessity of all epithets, were I even capable of applying any. The senate will thus perceive that the whole power of the state of Georgia, military as well as civil, has been made to bear upon these Indians, without their having any voice in forming, judging upon, or executing the laws under which he is placed, and without even the poor privilege of establishing the injury he may have suffered, by Indian evidence; nay, worse still, not even by the evidence of a white man! Because the renunciation of his rights 82 PEECHES 0 HO NNRY CLAY. precludes all evidence, white or black, civilized or savage. There then he lies, with his property, his rights, and every privilege which makes human existence desirable, at the mere mercy of the state of Georgia; a state, in whose government or laws he has no voice. Sir, it is impossible for the most active imagination to conceive a condition of human society more perfectly wretched. Shall I be told that the condition of the African slave is worse No, sir; no, sir. It is not worse. The interest of the master makes it at once his duty and his inclination, to provide for the comfort and the health of his slave; for without these, he would be unprofitable. Both pride and interest render the master prompt in vindicating the rights of his slave, and protecting him from the oppression of others; and the laws secure to him the amplest means to do so. But who, what human being, stands in the relation of master or any other relation, which makes him interested in the preservation and protection of the poor Indian thus degraded and miserable Thrust out from human society, without the sympathies of any, and placed without the pale of common justice, who is there to protect him, or to defend his rights Such, Mr. President, is the present condition of these Cherokee mernorialists, whose case it is my duty to submit to the considera- tion of the senate. There remains but one more inquiry before I conclude. Is there any REMEDY within the scope of the powers of the federal government, as given by the constitution If we are without power, if we have no constitutional authority, then we are also without responsibility. Our regrets may be excited, our sym- pathies may be moved, our humanity may be shocked, our hearts may be grieved, but if our hands are tied, we can only unite with all the good, the christian, the benevolent portion of the human family, in deploring what we cannot prevent. But, sir, we are not thus powerless. I stated to the senate when I began, that there are two classes of the Cherokees; one of these classes de3ires to emigrate, and it was their petition I presented this morning; and with respect to these, our powers are ample to afford them the most liberal and effectual relief. They wish to go beyond the Mississippi, and to be guarantied in the possession of the country which may be there assigned to them. As the congress of the United States have full powers over the territories, we may give them all the guarantee which congress can express, for the undisturbed possession of their lands. With respect to their case, there can be no question as to our powers. And, then, as to those who desire to remain on this side the river, I ask, again, are we powerless Can we afford them no redr'ess Must we sit still, and see the injury they suffer, and extend no hand to relieve them It were strange, indeed, were such the case. Why have we guarantied to them the enjoyment of their own laws Why have we pledged to them protection 220 OUR RELATIONS WITH THE CHEROKEES. 221 Why have we assigned them limits of territory Why have we declared that they shall enjoy their homes in peace, without molesta- tion from any If the United Slates government has contracted these serious obligations, it ought, before the Indians were reduced by our assurances to rely upon our engagement, to have explained to them its want of authority to make the contract. Before we pretend to Great Britain, to Europe, to the civilized world, that such were the rights we would secure to the Indians, we ought to have examined the extent and the grounds of our own rights to do so. But is such, indeed, our situation No, sir. Georgia has shut her courts against these Indians. What is the remedy 7b open ours. Have we not the right What says the constitution ' The judicial power shall extend to all cases in law and equity, arising under this constitution, the laws of the United States, and treaties made, or which shall be made, under their authority.' But here was a case of conflict between the rights of the proprie- tors and the local laws; and here was the very case which the constitution contemplated, when it declared that the power of the federal judiciary should extend to all cases under the authority of the United States. Therefore, it was fully within the competence of congress, under the provisions of the constitution, to provide the manner in which the Cherokees might have their rights decided, because a grant of the means was included in the grant of juris- diction. It was competent, then, for congress to decide, whether the Cherokee had a right to come into a court of justice and to make an appeal to the highest authority, to sustain the solemn treaties under which their rights had been guarantied, and in the sacred character of which they had reposed their confidence. And if congress possessed the power to extend relief to the Indians, were they not bound, by the most sacred of human considerations, the obligations of treaties, the protection assured them, by every chris- tian tie, every benevolent feeling, every humane impulse of the human heart, to extend it If they were to fail to do this, and there was, as reason and revelation declared there was, a tribunal of eternal justice, to which all human power was amenable, how could they, if they refused to perform their duties to this injured and oppressed, though civilized race, expect to escape the visitations of that divine vengeance which none would be permitted to avoid, who had committed wrong, or done injustice to others At this moment, when the United States were urging on the government of France the fulfilment of the obligations of the treaty concluded with that country, to the execution of which, it was contended that France had plighted her sacred faith, what strength, what an irresistible force would be given to our plea, if we could say to France, that, in all instances, we had completely fulfilled all our engagements, and that we had adhered faithfully to every obligation which we had contracted, no matter whether it SPEECHES OF HENRY CLAY. was entered into with a powerful or a weak people; if we could say to her, that we had complied with all our engagements to others, that we now came before her, always acting right as we had done, to induce her also to fulfil her obligations to us. How should we stand in the eyes of France, and of the civilized world, if we, in spite of the most solemn treaties, which had existed for half a century, and had been recognised in every form, and by every branch of the government; how would they be justified, if they, suffered these treaties to be trampled under foot, and the rights which they were given to secure, trodden into the dust How would Great Britain, after the solemn understanding entered into with her at Ghent, feel, after such a breach of faith And how could he, as a commissioner on the negotiation of that treaty, hold up his head before Great Britain, after having been thus made an instrument of fraud and deception, as he assuredly would have been, if the rights of the Indians are to be thus violated, and the treaties by which they were secured, violated How could he hold up his head, after such a violation of rights, and say that he was proud of his country, of which they all must wish to be proud For himself, he rejoiced that he had been spared, and allowed a suitable opportunity to present his views and opinions, on this great national subject, so interesting to the national character of the country for justice and equity. He rejoiced that the voice which, without charge of presumption or arrogance, he might say, was ever raised in defence of the oppressed of the human species, had been heard in defence of this most oppressed of all. To him, in that awful hour of death, to which all must come, and which, with respect to himself, could not be very far distant, it would be a source of the highest consolation, that an opportunity had been found by him, on the floor of the senate, in the discharge of his official duty, to pronounce his views on a course of policy marked by such wrongs as were calculated to arrest the attention of every one, and that he had raised his humble voice, and pronounced his solemn protest, against such wrongs. He would no longer detain the senate, but would submit the following propositions. Resolved, that the committee on the judiciary be directed to inquire into the expe- diency of making further provision, by law, to enable Indian nations or tribes, to whose use and occupancy lands are secured by treaties concluded between them and the United States, to defend and maintain their rights to such lands, in the courts of the United States, in conformity with the constitution of the United Stales. Resolved, that the committee on Indian affairs be directed to inquire into the expe- diency of making further provisions, by law, for setting apart a district of country west of the Mississippi liver, for such of the Cherokee nation as may be disposed to emigrate and to occupy the same, and for securing, in perpetuity, the peaceful arid undisturbed enjoyment thereof, to the emigrants and their descendants. Mr. Clay moved that the memorial and resolutions adopted by the council of the Running Waters. be referred to the committee on Indian affairs, and printed. 222 OUR RELATIONS WITH THE CHEROKEES. As to his resolutions, he knew, that in the regular order of busi- ness, they could not be taken up until to-morrow, but, if it met with the approbation of the senate, he would be as well disposed to act on them to-day as to-morrow. In reply to Mr. Cuthbert, of Georgia, and Mr. White, of Ten- nessee, Mr. Clay said he could assure the honorable senator from Georgia, that nothing was further from his purpose, than to make any display on this occasion. That he always left to others, and by the judgment of the senate he was willing to abide, whether the honorable senator himself had not been guilty of that which he imputed to others. For, after addressing the senate, himself, some time, he had said that he did not intend arguing the question, that Georgia would not appear before the senate or any other tribunal. Now, Georgia might be content to do that, but could congress, could honorable senators, reconcile it with their duty, with their responsibility, to coldly contemplate the violation of numerous treaties, to witness the destruction of a people under the protection of the United States, and to let that injustice which had been inflicted on these unfortunate Cherokees, be perpetuated without the slightest notice on their part The gentleman from Tennessee, (Mr. White,) had remarked, that they were all unconstitutional treaties; that they had no bind- ing force as treaties; that general Washington was mistaken; that every succeeding administration was mistaken; that general Jack- son himself was mistaken, in 1817, in regard to these treaties. Now, if they gave the argument of the honorable senator from Tennessee its full force, what was the consequence What did he, (Mr. Clay,) offer He said, merely to open the question to the court. If they had no validity, if the question which was sent to the judiciary did not rest upon treaties, they could vindicate no rights under them. Why had Georgia, if she believed there were no treaties, made provisions in her late act to which he had referred Why shut out the rights of the Indians under the treaty Why, if she was convinced of the unconstitutioiiality of the treaties, did she not allow them to be submitted to the federal judiciary, which was bound to declare that they were not obliga- tory and binding, if unconstitutional Why has she studiously precluded the possibility of a review, in the supreme court, of the decisions of the local tribunals But the gentleman had told the senate, that the treaty of '91 was the first that guarantied to the Cherokees their lands, and that president Washington doubted whether it was necessary to submit it to the senate. It might be true, at the commencement of the government, when every thing was new and unfixed. that there were doubts; but general Wash- ington decided that it was a treaty, and laid it, with his doubts, before the senate, who decided them, and the treaty was ratified by and with the consent of the senate. And from that day those 223 SPEECHES OF HENRY CLAY. doubts have remained dispelled. He was indebted to the honor- able senator for the historical fact which he, (Mr. Clay,) had not before pressed, that this very guaranty which secured to the Indians the undisturbed possession of their lands in the treaty of '91, was inserted by the express direction of the father of his country. And the senate was called upon now, not merely to violate the solemn obligations which the whole nation had contracted, but to violate the provision which had been inserted at the instance of the venerated father of his country! The honorable senator had told this body, that the treaty of '91 was the first in which there was any guarantee. If the gentleman meant to say it was the first in which there was any express guarantee, he, (Mr. Clay,) would admit it. But, in the treaty of '85, if it was not expressed, was it not implied What was that clause, marking the boundaries of their territory That, in the same treaty, which places the Indians under the protection of the United States, and excludes them from the authority of any other sovereign And that, which outlaws citizens of the United States who intrude in their territory What was the meaning of those clauses, if they did not, by implication at least, guaranty their rights, their property, and the peace of their country But, the gentleman eays, that in inserting the guaranty of '91, there was a mistake; it was supposed that it was without the limits of North Carolina, and other states; a mistake which ran through all the treaties from that time down to 1817, which renewed and enforced the preexisting treaties. So that general Jackson himself had been acting under a mistake when he signed the treaty of 1817. Is it possible, that, if a mistake were committed as early as 1791, it would not have been corrected in some of the various treaties negotiated as late as 1817 The senator had said also, that the states had a right to extend their laws over all the territories and people within their limits, as defined by the treaty of '83. Why, that was the very question under consideration, the identical question to be submitted to the judiciary. He, (Mr. Clay,) contended that the states had no right to extend their laws over that portion of the territory assigned to the Indians, or over the Indians dwelling upon it. And that is the exact question which his resolution proposes to be submitted to the determination of the judiciary, and which the late act of Georgia carefully shuns. But the senator from Tennessee had asked, ' what will the poor Indian, with his six hundred and forty acres of land, do, contending for his rights in a court of justice' Why, he, (Mr. Clay,) would admit that his condition would be miserable enough; but it was all they could do for him, and they were bound to do all they could, under the constitutional power they possessed, to maintain his tights. But, he would ask, what was to prevent these Indians, 224 OUR RELATIONS WITH THE CHEROKEES. 225 in their corporate, or collective character, from bringing their grievances before the courts Nothing. And, that they were competent to this, we had only to look at the state papers which had emanated from them, and which did thein immortal credit, to be convinced. The senator from Tennessee asked, 'what the states would do Would they array the federal power against the power of the state governments, and thus produce that condition of things which must result in the Indians' being stricken from the face of the earth' iDid not the honorable senator remember the period when a state of this union was actually arrayed and mar- shalled to defend its interpretation of the constitution He was hearty in the support of the force bill; he did not stop to look at the possible consequences of a civil war. He, (Mr. Clay,) gave it his reluctant and most painful support. He would gladly have turned the bitter cup from his lips, but he felt it to be his duty to sustain the authority of the general government; and, after giving to the subject the most solemn and serious consideration, he felt himself constrained to sustain that measure. And he went along with the senator from Tennessee upon the principle, now denied by him, that the federal authority must maintain its dignity. He went upon the ground, now abandoned by the senator from Tennessee, that no state ought to array itself against the constitutional powers of this government. How was the fact up to the period of 1829 The gentleman from Tennessee tells us the true policy of this government is to send these poor creatures beyond the Mississippi, and that there is no impediment in the obligations of subsisting treaties. Never, until the new light burst upon us, that hundreds of Indian treaties, made during a period of half a century, under almost every admin- istration of the government, concluded and ratified with all the solemn forms of the constitution, and containing the most explicit guarantees and obligations of protection to the Indians, and of security to their possessions, were mere nullities, was it supposed competent to effect a compulsory removal of the Indians beyond the Mississippi. It is true, that the policy of removing them has been long entertained; was contemplated by Mr. Jefferson; but it was a free, voluntary, and unconstrained emigration. No one, until of late, ever dreamed of a forcible removal, against their consent, accomplished either by the direct application of military power, or by cruel and intolerable local legislation. He wished that they would voluntarily remove. He believed that absorption or extinction was the only alternative of their remaining in the bosom of the whites. But they were a part of the human race, as capable as we are of pleasure and pain, and invested with as indisputable a right as we have, to judge of and pursue their own happiness. It is said, that annihilation is the destiny of the Indian race. VOL. II. 29 2 SPEECHES OF HENRY CLAY. Perhaps it is, judging from the past. But shall we therefore hasten it Death is the irreversible decree pronounced against the human race. Shall we accelerate its approach, because it is inevitable No, sir. Let us treat with the utmost kindness, and the most perfect justice, the aborigines whom Providence has committed to our guardianship. Let us confer upon them, if we can, the inesti- mable blessings of Christianity and civilization, and then, if they must sink beneath the progressive wave of civilized population, we are free from all reproach, and stand acquitted in the sight of God and man. The senator from Tennessee has left the senate under the impression, no doubt unintentionally, that three other states had advanced as far as Georgia in the exercise of a jurisdiction over the Indians and their property. But if he, (Mr. Clay,) were rightly informed, this was far from correct. North Carolina had exercised no such jurisdiction. She had not touched a hair upon the head of any Indian. Tennessee had extended her laws to the Indian country, for the sole purpose of protecting the Indians, and punishing the white intruders. Her upright judges and tribunals concurred, unanimously, if he were rightly informed, in supporting the Indian rights. No state, he believed, but Georgia, had seized upon the Indian lands, and distributed them among the whites. From the commencement of our independence down to this time, there was not another instance of such seizure, and appropriation, by any other member of the confederacy. Mr. Clay assured the senator from Georgia, that he had not sought for the position in which he was placed. It was sought of him. He was applied to by the unfortunate Cherokees, to present their case to the senate. And he should have been false and faithless to his own heart, and unworthy of human nature, if he had declined to be their organ, however inadequate he feared he had proved himself to be. On the whole, then, said Mr. Clay, the resolutions proposed an inquiry into the suitableness of making further provision for the Cherokees who choose to emigrate beyond the Mississippi. And in regard to those of them who will not go, but who prefer to cling to the graves of their forefathers, and to the spot which gave them birth, in spite of any destiny impending over them, the resolution proposes, that, since Georgia has shut her courts against them, we should inquire whether we should not open those of the federal government to them, and ascertain whether, according to the constitution, treaties, and laws, we are capable of fulfilling the obligations which we have solemnly contracted. The memorial of the Cherokees was then referred to the committee on Indian affairs, and Mr. Clay's resolutions laid on the table for one day. 226 ON THE CUMBERLAND ROAD BILL. IN THE SENATE OF THE UNITED STATES, FEBRUARY 11, 1835 [THiE Cumberland road is a national work, constructed under the authority of congress, commencing at Cumberland on the Potomac river in the state of Maryland, and extending west to the Ohio river at Wheeling; from whence it is to be continued, under the name of the national road, through Ohiio, Indiana, Illinois, and Missouri, to Jefferson, the capital of the latter state. At the time when the compact with the state of Ohio was made by the United States, this road had become absolutely necessary for the purpose of securing an intercourse between the west and the east side of the Alleghany mountains. The first step to effect this, was taken in 1802, when Mr. Jefferson was president. Its completion to the Ohio river, was in a great measure owing to the exertions of Mr. Clay in the cause of internal improvement, at various pericds during his congressional career. After the road had been made to Columbus, in the state of Ohio, the Ohio section had been given to and accepted by that state. At the session of congress in 1834, an appropriation of three hundred thousand dollars had been made for repairing the road, and on the present occasion a further sum of three hundred and forty thousand dollars was proposed for the purpose of putting the work in good condition, previously to its being surrendered to the states through which it passes. The bill to effect this object passed the senate by a vote of thirty-two to nine, after considerable discussion; Mr. Clay giving his views as follows. ] MR. CLAY remarked, that he would not have said a word then, but for the introduction in this discussion of collateral matters, not immediately connected with it. He meant to vote for the appro- priation contained in the bill, and he should do so with pleasure, because, under all the circumstances of the case, he felt himself called upon by a sense of imperative necessity to yield his assent to the appropriation. The road would be abandoned, and all the expenditures which had heretofore been made upon it would have been entirely thrown away, unless they now succeeded in obtain- ing an appropriation to put the road in a state of repair. Now, he did not concur with the gentleman, (Mr. Ewing,) that Ohio could, as a matter of strict right, demand of the government to keep this road in repair. And why so Because, by the terms of the compact, under the operation of which the road was made, there was a restricted and defined fund, set apart in order to accom. plish that object. And that fund measured the obligation of the government. It had been, however, long since exhausted, There SPEECHES OF HENRY CLAY. was no obligation, then, on the part of the government, to keep the road in repair. But he was free to admit, that considerations of policy would prompt it to adopt that course, in order that an oppor- tunity should be presented to the states to take it into their own hands. The honorable senator from Pennsylvania felicitated himself on having, at a very early epoch, discovered the unconstitutionality of the general government's erecting toll-gates upon this road, and he voted against the first measure to carry that object into execution. He (Mr. Clay) must say, that, for himself, he thought the general government had a right to adopt that course which it deemed gecessary for the preservation of a road which was made under its own authority. And as a legitimate consequence from the power of making a road, was derived the power of making an improve- ment on it. That was established; and, on that point he was sure the honorable gentleman did not differ from those who were in favor of establishing toll-gates at the period to which he had alluded. He would repeat, that, if the power to make a road were conceded, it followed, as a legitimate consequence from that power, that the general government had a right to preserve it. And, if the right to do so, there was no mode of preservation more fitting and suitable, than that which resulted from a moderate toll for keeping up the road, and thus continuing it for all time to come. The opinion held by the honorable senator, at the period to which he had adverted, was not the general opinion. He would well remember that the power which he, (Mr. Clay,) contended, did exist, was sustained in the other branch of the legislature by large majorities. And, in that senate, if he was not mistaken, there were but nine dissentients from the existence of it. If his recollection deceived him not, he had the pleasure of concurring with the distinguished individual who now presided over the deliberations of that body. He thought that he, (the vice-president,) in common with the majority of the senate and house of representatives, coincided in the belief, that a road, constructed under the orders of the general government, ought to be preserved by the authority which brought it into being. Now, that was his, (Mr. Clay's,) opinion still. He wvas not one of those who, on this or any other great national subject, had changed his opinion in consequence of being wrought upon by various conflicting circumstances. With regard to the general power of making internal improve- ments, as far as it existed in the opinions he had frequently expressed in both houses, his opinion was unaltered. But with respect to the expediency of exercising that power, at any period, it must depend upon the circumstances of the times. And, in his opinion, the power was to be found in the constitution. This belief he had always entertained, and it remained unshaken. He could not coincide in the opinion expressed by the honorable senator 228 ON THE CUMBERLAND ROAD BILL. from Pennsylvania and the honorable senator from Massachusetts, in regard to the disposition that was to be made of this road. What, he would ask, had been stated on all hands That the Cumberland road was a great national object, in which all the people of the United States were interested and concerned; that we are interested in our corporate capacity, on account of the stake we possessed in the public domain, and that we were consequently benefited bv that road; that the people of the west were interested in it, as a common thoroughfare to all places from one side of the country to the other. Now, whatwas the principle of the arrange- ment that had been entered into It was this common object, this national object, this object in which the people of this country were interested; its care, its preservation, was to be confided to different states, having no special motive or interest in its preservation; and, therefore, not responsible for the consequences that might result. The people of Kentucky and Indiana, and of the states west of those states, as well as the people living on the eastern side of the moun- tains, were all interested in the use and occupation of this road, which, instead of being retained and kept under the control of that common government in which all had a share, their interest in it was to be confided to the local jurisdictions through which the road passed; and thus the states, generally, were to depend upon the manner in which they should perform their duties; upon those having no sympathy with them, having no regard for their interest, but left to do as they chose in regard to the preservation of this road. He would say that the principle was fundamentally wrong. He protested against it; had done from the first, and did so again now. It was a great national object, and they might as well give the care of the mint to Pennsylvania, the protection of the breakwater, or of the public vessels in New York, Baltimore, and Philadelphia, to the respective legislatures of the states in which that property was situated, as give the care of a great national road, in which the whole people of the United States were concerned, to the care of a few states which were acknowledged to have no particular inter- est in it - states having so little interest in that great work, that they would not repair it when offered to their hands. But, he said, he would vote for this appropriation; he was compelled to vote for it by the force of circumstances over which he had no control. He had seen, in reference to internal improve- ments, and other measures of a national character, not individuals, merely, but whole masses, entire communities, prostrating their own settled opinions, to which they had conformed for half a century, wheel to the right or the left, march this way or that, according as they saw high authority for it. And he saw that there was no way of preserving this great object, which afforded such vast facilities to the western states, no other mode of preserving it, 229 230 SPEECHES OF HENRY CLAY. but by a reluctant acquiescence in a course of policy, which all, at least, had not contributed to produce, but which was formed to operate on the country, and from which there lay no appeal. Mr. Clay, in conclusion, again reiterated that he should vote for the appropriation in this bill, although very reluctantly, and with the protest, that the road in question, being the common property of the whole nation, and under the guardianship of the general government, ought not to be treacherously parted from by it, and put into the hands of the local governments, who felt no interest in the matter. ON THE APPOINTING AND REMOVING POWER. IN THE SENATE OF THE UNITED STATES, FEBRUARY 18, 1835. [IN the course of a discussion on a bill relating to the power of appointing to and removal from office, as exercised by the president, Mr. Clay made the following speech, in which he denies the constitutionality of the unlimited power of removal from office, by the president, at his own will and pleasure, without the consent of the senate. Mr. Clay's views of the nature and consequences of this arbitrary power claimed and exercised by president Jackson, will be found interesting, as well as his allusions to the pecuniary troubles and distress, which he then predicted would follow from the acts of Jackson's administration - predictions painfully verified in the subse- quent succession of disasters which have befallen the country.] MR. CLAY thought it extremely fortunate that this subject of executive patronage came up, at this session, unincumbered by any collateral question. 'At the last session we had the removal of the deposits, the treasury report sustaining it, and the protest of the president against the resolution of the senate. The bank mingled itself in all our discussions, and the partisans of executive power availed themselves of the prejudices which had been artfully excited against that institution, to deceive and blind the people as to the enormity of executive pretensions. The bank has been doomed to destruction, and no one now thinks the recharter of it is practicable, or ought to be attempted. I fear, said Mr. Clay, that the people will have just and severe cause to regret its destruction. The administration of it was uncommonly able; and one is at a loss which most to admire, the imperturbable temper or the wisdom of its enlightened president. No country can possibly possess a better general currency than it supplied. The injurious consequences of the sacrifice of this valuable institution will soon be felt. There being no longer any sentinel at the head of our banking establishments to warn them, by its information and operations, of approaching danger, the local institutions, already multiplied to an alarming extent, and almost daily multiplying, in seasons of prosperity, will make free and unrestrained emissions. All the channels of circu- lation will become gorged. Property will rise extravagantly high, and, constantly looking up, the temptation to purchase will be irresistible. Inordinate speculation will ensue, debts will be freely contracted; and, when the season of adversity comes, as come it SPEECHES OF HENRY CLAY. must, the banks, acting without concert and without guide, obeying the law of self-preservation, will all at the same time call in their issues; the vast number will exaggerate the alarm, and general distress, wide-spread ruin, and an explosion of the whole banking system, or the establishment of a new bank of the United States, will be the ultimate effects. We can now deliberately contemplate the vast expansion of executive power, under the present administration, free from embar- rassment. And is there any real lover of civil liberty, who can behold it without great and just alarm Take the doctrines of the protest, and the secretary's report together, and, instead of having a balanced government with three coordinate departments, we have but one power in the state. According to those papers, all the officers concerned in the administration of the laws are bound to obey the president. His will controls every branch of the admin- istration. No matter that the law may have assigned to other officers of the government specifically defined duties; no matter that the theory of the constitution and the law supposes them bound to ihe discharge of those duties according to their own judgment, and under their own responsibility, and liable to impeachment for malfeasance; the will of the president, even in opposition to their own deliberate sense of their obligations, is to prevail, and expul- sion from office is the penalty of disobedience! It has not, indeed, in terms, been claimed, but it is a legitimate consequence from the doctrines asserted, that all decisions of the judicial tribunals, not conformable with the president's opinion, must be inoperative, since the officers charged with their execution are no more exempt from the pretended obligation to obey his orders than any other officers of the administration. The basis of this overshadowing superstructure of executive power is, the power of dismission, which it is one of the objects of the bill under consideration somewhat to regulate, but which it is contended by the supporters of executive authority is uncontrolla- ble. The practical exercise of this power, during this administra- tion, has reduced the salutary cooperation of the senate, as approved by the constitution, in all appointments, to an idle form. Of what avail is it, that the senate shall have passed upon a nomination, if the president, at any time thereafter, even the next day, whether the senate be in session or in vacation, without any known cause, may dismiss the incumbent Let us examine the nature of this power. It is exercised in the recesses of the executive mansion, perhaps upon secret information. The accused officer is not present nor heard, nor confronted with the witnesses against him, and the president is judge, juror, and executioner. No reasons are assigned for the dismission, and the public is left to conjecture the cause. Is not a power so exercised essentially a despotic power It is adverse to the genius of all free governments, the foundation of 232 THE APPOINTING AND REMOVING POWER. 233 which is responsibility. Responsibility is the vital principle of civil liberty, as irresponsibility is the vital principle of despotism. Free government can no more exist without this principle than animal life can be sustained without the presence of the atmosphere. But is not the president absolutely irresponsible in the exercise of this power How can he be reached By impeachment It is a mockery. It has been truly said, that the office was not made for the incumbent. Nor was it created for the incumbent of another office. In both, and in all cases, public offices are created for the public; and the people have a right to know wrhy and wherefore one of their servants dismisses another. The abuses which have flowed, and are likely to flow from this power, if unchecked, are indescribable. Howv often have all of us witnessed the expulsion of the most faithful officers, of the highest character, and of the most undoubted probity, for no other imaginable reason, than difference in political sentiments It begins in politics, and may end in religion. If a president should be inclined to fanaticism, and the power should not be regulated, what is to prevent the dismission of every officer who does not belong to his seec, or persuasion He may, perhaps truly, say, if he does not dismiss him, that he has not his confidence. It was the cant language of Cromwell and his associates, when obnoxious individuals were in or proposed for office, that they could not confide in them. The tendency of this power is to revive the dark ages of feudalism, and to render every officer a feudatory. The bravest man in office, whose employment and bread depend upon the will of the president, will quail under the influence of the power of dismission. If opposed in sentiments to the administration, he will begin by silence, and finally will be goaded into partisanship. The senator from New York, (Mr. Wright,) ill analyzing the list of one hundred thousand, who are reported by the committee of patronage to draw money from the public treasury, contends that a large portion of them consists of the army, the navy, and revolu- tionary pensioners; and, paying a just compliment to their gallantry and patriotism, asks, if they will allow themselves to be instru- mental in the destruction of the liberties of their country It is very remarkable, that hitherto the power of dismission has not been applied to the army and navy, to which, from the nature of the service, it would seem to be more necessary than to those in civil places. But accumulation and concentration ar- the nature of all powver, and especially of executive power. And it cannot be doubted, that, if the power of dismission, as now exercised, in regard to civil officers, is sanctioned and sustained by the people, it will, in the end, be extended to the army and navy. When so extended, it will produce its usual effect of subserviency, or if the present army and navy should be too stern and upright to he VOL. I. 30 SPEECHES OF HENRY CLAY. moulded according to the pleasure of the executive, we are to recollect, that the individuals who compose them are not to live always, and may be succeeded by those who will be more pliant and yielding. But I would ask the senator what has been the effect of this tremendous power of dismission upon the classes of officers to which it has been applied Upon the post-office, the land- office, and the custom-house They constitute so many corps d'armee, ready to further on all occasions the executive views and wishes. They take the lead in primary assemblies, whenever it is deemed expedient to applaud or sound the praises of the adminis- tration, or to carry out its purposes in relation to the succession. We are assured, that a large majority of the recent convention at Columbus, in Ohio, to nominate the president's successor, were office-holders. And do you imagine that t/heywould nominate any other than the president's known favorite The power of removal, as now exercised, is nowhere in the constitution expressly recognised. The only mode of displacing a public officer, for which it does provide, is by impeachment. But it has been argued, on this occasion, that it is a sovereign power, an inherent power, and an executive power; and, therefore, that it belongs to the president. Neither the premises nor the conclusion can be sustained. If they could be, the people of the United States have all along totally misconceived the nature of their government, and the character of the office of their supreme magistrate. Sovereign power is supreme power; and in no instance whatever is there any supreme power vested in the president. Whatever sovereign power is, if there be any, conveyed by the constitution of the United States, is vested in congress, or in the president and senate. The power to declare wvar, to lay taxes, to coin money, is vested in congress; and the treaty-making power in the president and senate. The postmaster-general has the power to dismiss his deputies. Is that a sovereign power, or has he any Inherent power! That is a new principle to enlarge the powers of the general government. Hitherto it has been supposed, that there are no powers possessed by the government of the United States, or any branch of it, but such as are granted by the consti- tution; and, in order to ascertain what has been granted, that it was necessary to show the grant, or to establish that the power claimed was necessary and proper to execute some granted power. In other words, that there are no powers but those which are expressed or incidental. But it seems that a great mistake has existed. The partisans of the executive have discovered a third and more fruitful source of power. Inherent power! Whence is it derived The constitution created the office of president, and made it just what it is. It had no powers prior to its existence. It can have none but those which are conferred upon it by the instrument which created it, or laws passed in pursuance of that instrument. Do gentlemen 234 THE APPOINTING AND REMOVING POWER. 2 mean, by inherent power, such power as is exercised by the monarchs or chief magistrates of other countries If that be their meaning, they should avow it. It has been argued, that the power of removal from office is an executive power; that all executive power is vested in the presi- dent; and that he is to see that the laws are faithfully executed, which, it is contended, he cannot do, unless, at his pleasure, he may dismiss any subordinate officer. The mere act of dismission or removal may be of an executive nature, but the judgment or sentence which precedes it is a function of a judicial, and not executive nature. Impeachments, which, as has been already observed, are the only mode of removal from office expressly provided for in the constitution, are to be tried by the senate, acting as a judicial tribunal. In England, and in all the states, they are tried by judicial tribunals. In several of the states, removal from office sometimes is effected by the legislative authority, as in the case of judges on the concurrence of two thirds of the members. The administration of the laws of the several states proceeds regularly, without the exercise on the part of the governors of any power similar to that which is claimed for the president. In Kentucky, and in other states, the governor has no power to remove sheriffs, collectors of the revenue, clerks of courts, or any one officer employed in administration; and yet the governor, like the president, is constitutionally enjoined to see that the laws are faithfully executed. The clause relied upon to prove that all executive power is vested in the president, is the first section of the second article. On examining the constitution, we find that, according to its arrange- ment, it treats first of the legislative power, then of the executive, and lastly of the judicial power. In each instance, it provides how those powers shall be respectively vested. The legislative power is confided to a congress, and the constitution then directs how the members of the body shall be chosen, and, after having constituted the body, enumerates and carefully specifies its powers. And the same course is observed both with the executive and the judiciary. In neither case does the preliminary clause convey any power; but the powers of the several departments are to be sought for in the subsequent provisions. The legislative powers granted by the constitution are to be vested, how In a congress What powers Those which are enumerated. The executive power is to be vested, how In a council, or in several No, in a president of the United States of America. What executive power That which is possessed by any chief magistrate, in any country, or that which speculative writers attribute to the executive head No such thing. That power, and that only, which the constitution subse- quently assigns to the chief magistrate. The president is enjoined by the constitution to take care that SPEEdIfES OF HENRY CLAY. the laws be faithfully executed. tUnder this injunction, the power of dismission is claimed for him; and it is contended, that if those charged with the execution of the laws attempt to execute them in a sense different from that entertained by the president, he may prevent it, or withhold his cooperation. It would follow that, if the judiciary give to the law an interpretation variant from that of the president, he would not be bound to afford means which might become necessary to execute their decision. If these pretensions are well founded, it is manifest that the president, by means of the veto, in arresting the passage of laws which he. disapproves, and the power of expounding those which are passed, according to his own sense of them, will become possessed of all the practical authority of the whole government. If the judiciary decide a law contrary to the president's opinion of its meaning, he may command the marshal not to execute the decision, and urge his constitutional obligation to take care that the laws be faithfully executed. It will be recollected, perhaps, by the senate, that, during the discussions on the deposit question, I predicted that the day would arrive when a president, disposed to enlarge his powers, would appeal to his official oath as a source of power. In that oath he undertakes that he will, 'to the best of his ability, preserve, protect, and defend the constitution of the United States.' The fulfilment of the prediction quickly followed; and during the same session, in the protest of the president, we find him referring to this oath as a source of power and duty. Now, if the president, in virtue of his oath, may interpose and prevent any thing from being done, contrary to the constitution, as he understands it; and may, in virtue of the injunc- tion to take care that the laws be faithfully executed, prevent the enforcement of any law contrary to the sense in which he under- stands it, I would ask, what powers remain to any other branch of the government Are they not all substantially absorbed in the WILL of one man The president's oath obliges him to do no more than every member of congress is also bound by official oath to do; that is, to support the constitution of the United States, in their respective spheres of action. In the discharge of the duties specifically assigned to him by the constitution and laws, he is for ever to keep in viewr the constitution; and this every member of congress is equally bound to do, in the passage of laws. To step out of his sphere; to trench upon other departments of the government, under the notion that thev are about to violate the constitution, would be to set a most pernicious and dangerous example of violation of the constitution. Suppose congress, by two thirds of each branch, pass a law contrary to the veto of the president, and to his opinion of the constitution, is he afterwards at liberty to prevent its execution The injunction, to which I have adverted, common both to the federal and most of the state constitutions, THE APPOINTING AND ftEM OVING POWER. 237 imposes only upon the chief magistrate the duty of executing those laws with the execution of which he is specially charged; of supplying, when necessary, the means with which he is intrusted to enable others to execute those laws, the enforcement of which is confided to them; and to communicate to congress infractions of the laws, that the guilty may be brought to punishment, or the defects of legislation remedied. The most important branch of the government to the rights of the people, as it regards the mere execution of the laws, is the judiciary; and yet they hold their offices by a tenure beyond the reach of the president. Far from impairing the efficacy of any powers with which he is invested, this permanent character in the judicial office is supposed to give stability and independence to the administration of justice. The power of removal from office not being one of those powers which are expressly granted and enumerated in the constitution, and having I hope successfully shown that it is not essentially of an executive nature, the question arises, to what department of the government does it belong, in regard to all offices created by lav, or whose tenure is not defined in the constitution There is much force in the argument which attaches the power of dismission to the president and senate conjointly, as the appointing power. But I think we must look for it to a broader and higher source; the legislative department. The duty of appointment may be performed under a law which enacts the mode of dismission. This is the case in the post-office department, the postmaster-general being invested with both the power of appointment and of dismission. But they are not necessarily allied, and the law might separate them; and assign to one functionary the right to appoint, and to a different one the right to dismiss. Examples of such a separation may be found in the state governments. It is the legislative authority which creates the office, defines its duties, and may prescribe its duration. I speak, of course, of offices not created by the constitution, but the law. The office, coming into existence by the will of congress, the same will may provide how, and in what manner, the office and the officer shall both cease to exist. It may direct the conditions on which he shall hold the office, and when and how he shall be dismissed. Suppose the constitution had omitted to prescribe the tenure of the judicial office, could not congress do it But the constitution has not fixed the tenure of any subordinate offices, and therefore congress may supply the omission. It would be unreasonable to contend that, although congress, in pursuit of the public good, brings the office and the officer into being, and assigns their purposes, yet the president has a control over the officer which congress cannot reach or regulate; and this control, in virtue of some vague and undefined implied executive powver, which the friends of executive supremacy are totally unable to attach to any specific clause in the constitution ! SPEECHES OF HENRY CLAY. It has been contended, with great ability, that, under the clause of the constitution which declares, that congress shall have power ' to make all laws, which shall be necessary and proper for carrying into execution the foregoing powers, and all others vested by this constitution in the government of the United States, or in a'ny department or officer thereof,' congress is the sole depository of implied powers, and that no other department or officer of the government possesses any. If this argument be correct, there is an end of the controversy. But if the power of dismission be incident to the legislative authority, congress has the clear right to regulate it. And if it belong to any ether department of the government, under the cited clause, congress has the power to legislate upon the subject, and may regulate it, although it could not divest the department altogether of the right. Hitherto I have considered the question upon the ground of the constitution, unaffected by precedent. We have in vain called upon our opponents to meet us upon that ground; and to point out the clause of the constitution which by express grant, or neces- sary implication, subjects the will of the whole official corps to the pleasure of the president, to be dismissed whenever he thinks proper, without any cause, and without any reasons publicly assigned or avowed for the dismission, and which excludes congress from all authority to legislate against the tremendous consequences of such a vast power. No such clause has been shown; nor can it be, for the best of all reasons, because it does not exist. Instead of bringing forward any such satisfactory evidence, gentlemen entrench themselves behind the precedent which was established in 1789, when the first congress recognised the power of dismission in the president; that is, they rely upon the opinion of the first congress, as to what the constitution meant, as conclusive of what it is. The precedent of 1789 was established in the house of represent- atives against the opinion of a large and able minority, and in the senate by the casting vote of the vice-president, Mr. John Adams. It is impossible to read the debate which it occasioned, without being impressed with the conviction that the just confidence reposed in the father of his country, then at the head of the government, had great, if not decisive influence in establishing it. It has never, prior to the commencement of the present administration, been submitted to the process of review. It has not been reconsidered, because, under the mild administrations of the predecessors of the president, it was not abused, but generally applied to cases to which the power was justly applicable. [Mr. Clay here proceeded to recite from a memoranbim. the number of officers removed under the different presidents, from Washington down; but the reporter not having access to the memorandum, is unable to note th, precise number under each, and can only state generally that it was inconsiderable, under all the administrations 238 THE APPOINTING AND REMOVING POWER. 239 prior to the present, but under that of general Jackson the number of removals amounted to more than two thousand ; of which some five or six hundred were postmasters.] Precedents deliberately established by wise men are entitled to great weight. They are the evidence of truth, but only evidence. If the same rule of interpretation has been settled, by concurrent decisions, at different and distant periods, and by opposite dominant parties, it ought to be deemed binding, and not disturbed. But a solitary precedent, established, as this was, by an equal vote of one branch, and a powerful minority in the other, under the influence of a confidence never misplaced in an illustrious indi- vidual, and which has never been reexamined, cannot be conclusive. The first inquiry which suggests itself upon such a precedent as this is, brought forward by the friends of the administration, is, what right have they to the benefit of any precedent The course of this administration has been marked by an utter and contempt- uous disregard of all that had been previously done. Disdaining to move on in the beaten road carefully constructed by preceding administrations, and trampling upon every thing, it has seemed resolved to trace out for itself a new line of march. Then, let us inquire how this administration and its partisans dispose of prece- dents drawn from the same source, the first congress under the present constitution. If a precedent of that congress be sufficient authority to sustain an executive power, other precedents estab- lished by it, in support of legislative powers, must possess a like force. But do they admit this principle of equality No such thing. They reject the precedents of the congress of 1789, sustain- ing the power of congress, and cling to that only which expands the executive authority. They go for prerogative, and they go against the rights of the people. It was in the first congress that assembled in 1789, that the bank of the United States was established, the power to adopt a protective tariff was maintained, and the right was recognised to authorize internal improvements. And these several powers do not rest on the basis of a single precedent. They have been again and again affirmed, and reaffirmed by various congresses, at different and distant periods, under the administration of every dominant party; and, in regard to the bank, it has been sanctioned by every branch of the government, and by the people. Yet the same gentlemen, who console themselves with the precedent of 1789, in behalf of the executive prerogative, reject as unconstitutional all these legislative powers. No one can carefully examine the debate in the house of repre- sentatives in 1789, without being struck with the superiority of the argument on the side of the minority, and the unsatisfactory nature of that of the majority. How various are the sources whence the power is derived! Scarcely any two of the majority agree in their 4 SPEEC HES OF HENRY CLAY. deduction of it. Never have I seen, from the pen or tongue of Mr. Madison, one of the majority, any thing so little persuasive or convincing. He assumes that all executive power is vested in the president. He does not qualify it; he does not limit it to that executive power which the constitution grants. He does not discriminate between executive power assigned by the constitution, and executive power enacted by law. He asks, if the senate had not been associated with the president in the appointing power, whether the president, in virtue of his executive power, would not have had the right to make all appointments I think not; clearly not. It would have been a most sweeping and far-fetched implication. In the silence of the constitution, it would have devolved upon congress to provide by law for the mode of appointing to office; and that in virtue of the clause, to which I have already adverted, giving to congress power to pass all laws necessary and proper to carry on the government. He says, ' the danger, then, merely consists in this; the president can displace from office a man whose merits require that he should be continued in it. What will be the motives which the president can feel for such abuse of his power' What motives! The pure heart of a Washington could have had none; the virtuous head of Madison could conceive none; but let him ask general Jackson, and hle will tell him of motives enough. He will tell him, that lie wishes his- administration to be a unit; that he desires only one will to prevail in the executive branch of government; that he cannot confide in men who opposed his election; that he wants places to reward those who supported it; that the spoils belong to the victor; and that he is anxious to create a great power in the state, animated by one spirit, governed by one will, and ever ready to second and sustain his administration in all its acts and measures; and to give its undivided force to the appointment of the successor whom he may prefer. And what, Mr. President, do you suppose are the securities against the abuse of this power, on which Mr. Mad- ison relied 'In the first place,' he says, 'he will be impeach- able by this house before the senate, for such an act of mal- administration,' and so forth. Impeachment! It is not a scarecrow. Impeach the president for dismissing a receiver or register of the land office, or a collector of the customs! But who is to impeach him The house of representatives. Now suppose a majority of that house should consist of members who approve the principle that the spoils belong to the victors; and suppose a great number of them are themselves desirous to obtain some of these spoils, and can only be gratified by displacing inen from office whose merits require that they should be continued, what chance do you think there would be to prevail upon such a house to impeach the president And if it were possible that he should, under such circumstances, be impeached, what prospect do you 240 THE APPOINTING AND REMOVING POWER. 241 believe would exist of his conviction by two thirds of the senate, comprising also members not particularly averse to lucrative offices, and where the spoils doctrine, long practiced in New York, was first boldly advanced in congress The next security was, that the president, after displacing the meritorious officer, could not appoint another person without the' concurrence of the senate. If Mr. Madison had shown how, by any action of the senate, the meritorious otlicer could be replaced, there would have been some security. But the president has dismissed him; his office is vacant; the public service requires it to be filled, and the president nominates a successor. In consid- ering this nomination, the president's partisans have contended that the senate is not at liberty to inquire how the vacancy was produced, but is limited to the single consideration of the fitness of the person nominated. But suppose the senate were to reject him, that would only leave the office still vacant, and would not rein- state the removed officer. The president would have 1o difficulty in nominating another, and another, until the patience of the senate, being completely exhausted, they would finally confirm the appointment. What I have supposed is not theory but actually matter of fact. How often within a few years past have the senate disapproved of removals from office, which they have been subse- quently called upon to concur in filling Howv often wearied in rejecting, have they approved of persons for office whom they never would have appointed How often have members approved of bad appointments, fearing worse if they were rejected If the powers of the senate were exercised by one man, he might oppose, in the matter of appointments, a more successful resistance to executive abuses. He might take the ground that, in cases of improper removal, he would persevere in the rejection 'of every person nominated, until the meritorious officer was reinstated. But the senate now consists of forty-eight members, nearly equally divided. one portion of which is ready to approve of all nomina- tions; and of the other, some members conceive that they ought not to incur the responsibility of hazarding the continued vacancy of a necessary office, because the president may have abused his powvers. There is then no security, not the slightest practical secu- rity, against abuses of the power of removal in the concurrence of the senate in appointment to office. During the debate in 1789, Mr. Smith, of South Carolina, called for the clause of the constitution granting the-power. He said, 'w e are declaring a power in the president which may hereafter be greatly abused; for we are not always to expect a chief magistrate in whom such entire confidence can be placed, as lhe'present. Perhaps gentlemen are so much dazzled with the splendor of the virtues of the present president, as not to be able to see into futurity. We ought to contemplate VOL. IL. 31 8 4 SPEECHES OF HENRY CLAY. this power in the hands of an ambitious man, who might apply it to dangerous purposes. If we give this power to the president, he may from caprice remove the most worthy men from office; his will and pleasure will be the slight tenure by which the office is to be held, and of consequence you render the officer the mere state dependent, the abject elave of a person who may be disposed to abuse the confidence his fellow-citizens have placed in him.' Mr. Huntington said, ' if we have a vicious president who inclines to abuse this power, which God forbid, his responsibility will stand us in little stead.' Mr. Gerry, afterwards the republican vice-president of the United States, contended, Ithat we are making these officers the mere creatures of the president; they dare not exercise the privilege of their creation, if the president shall order themn to forbear; because he holds their thread of life. His power will be sovereign over them, and will soon swallow up the small security we have in the senate's concurrence to the appointment; and we shall shortly need no other than the authority of the supreme executive officer, to nominate, appoint, continue, or remove.' Was not that prophecy; and do we not feel and know that it is prophecy fu/filled There were other members who saw clearly into the future, and predicted, with admirable forecast, what would be the practical operation of this power. But there was one eminently gifted in this particular. It seems to have been specially reserved for a Jackson to foretell what a Jackson might do. Speaking of some future president, Mr. Jackson - (I believe of Georgia - that was his name. What a coincidence!) ' If he wants to establish an arbi- trary authority, and finds the secretary of finance, (Mr. Duane,) not inclined to second his endeavors, he has nothing more to do than to remove him, and get one appointed, (Mr. Taney,) of principles more congenial with his own. Then, says he, I have got the army; let mne have but the money, and I wvill establish my throne upon the ruins of your visionary republic. Black, indeed, is the heart of that man who even suspects him, (WASHINGTON,) to be capable of abusing powers. But, alas! he cannot be with us for ever; he is but mortal,' and so forth. ' May not a man with a Pandora's box in his breast come into power, and give us sensible cause to lament our present confidence and want of foresight' In the early stages, and during a considerable portion of the debate, the prevailing opinion seemed to be, not that the president was invested by the constitution with the power, but that it should be conferred upon him by act of congress. In the progress of it, the idea was suddenly started, that the president possessed the power from the constitution, and the first opinion was abandoned. It was finally resolved to shape the acts, on the passage of which the question arose, so as to recognise the existence of the power of removal in the president. 242 THE APPOINTING AND REMOVING POWER. 243 Such is the solitary precedent on which the contemners of all precedents rely for sustaining this tremendous power in one man! A precedent established against the weight of argument, by a house of representatives greatly divided, in a senate equally divided, under the influence of a reverential attachment to the father of his country, upon the condition that, if the power were applied as we know it has been in hundreds of instances recently applied, the president himself would be justly liable to impeachment and removal from office, and which, until this administration, has never, since its adoption, been thoroughly examined or considered -a power, the abuses of which, as developed under this administra- tion, if they be not checked and corrected, must inevitably tend to subvert the constitution, and overthrow public liberty. A standing army has been, in all free countries, a just object of jealousy and suspicion. But is not a corps of one hundred thousand dependents upon government, actuated by one spirit, obeying one will, and aiming at one end, more dangerous and formidable than a stand- ing army The standing army is separated from the mass of society, stationed in barracks or military quarters, and operates by physical force. The official corps is distributed and ramified throughout the whole couniry, dwelling in every city, village, and hamlet, having daily intercourse with society, and operates on public opinion. A brave people, not yet degenerated, and devoted to liberty, may successfully defend themselves against a military force. But if the official corps is aided by the executive, by the post-office department, and by a large portion of the public press, its power is invincible. That the operation of the principle, which subjects to the will of one man the tenure of all offices, which he may vacate at pleasure, without assigning any cause, must be to render them subservient to his purposes, a knowledge of human nature, and the short experience which we have had, clearly demonstrate. It may be asked, why has this precedent of 1789 not been reviewed Does not the long acquiescence in it prove its pro- priety It has not been reexamined for several reasons. In the first place, all feel and own the necessity of some more summary and less expensive and less dilatory mode of dismissing delinquents from subordinate offices, than that of impeachment, which, strictly speaking, was perhaps the only one in the contemplation of the framers of the constitution; certainly it is the only one for which it expressly provides. Then, under all the predecessors of the president, the power was mildly and beneficially exercised, having been always, or with very few exceptions, applied to actual delinquents. Notwithstanding all that has been said about the number of removals which were made during Mr. Jefferson's administration, they were, in fact, comparatively few. And yet he came into power as the head of a great party, which for years had 4 SPEECHES OF HENRY CLAY. been systematically excluded from the executive patronage; a plea which cannot be urged in excuse for the present chief magistrate. It was reserved for him to act on the bold and daring principle of dismissing from office, those who had opposed his election; of dismissing from office for mere difference of opinion! But it will be argued, that if the summary process of dismission be expedient in some cases, why take it away altogether The bill under consideration does not disturb the power. By the usage of the government, not I think by the constitution, the president practically possesses the power to dismiss those who are unworthy of holding these offices. By no practice or usage but that which he himself has created, has he the power to dismiss meritorious officers only because they differ from him in politics. The principal object of the bill, is, to require the president, in cases of dismission, to communicate the reasons which have induced him to dismiss the officer; in other words, to make an arbitrary and despotic power a responsible power. It is not to be supposed that, if the president is bound publicly to state his reasons, that he would act from passion or caprice, or without any reason. He would be ashamed to avow that he discharged the officer because he opposed his election. And yet this mild regulation of the power is opposed by the friends of the administration! They think it unreasonable that the president should state his reasons. If he has none, perhaps it is. But, Mr. President, although the bill is, I think, right in principle, it does not seem to me to go far enough. It makes no provision for the insufficiency of the reasons of the president, by restoring or doing justice to the injured officer. It will be some but not sufficient restraint against abuses. I have, therefore, prepared an amendment which I beg leave to offer, but which I will not press against the decided wishes of those having the immediate care of the bill. By this amendment, as to all offices created by law, with certain exceptions, the power at present exercised is made a -suspensory power. The president may, in the vacation of the senate, suspend the officer and appoint a temporary successor. At the next session of the senate, he is to communicate his reasons; and if they are deemed sufficient, the suspension is confirmed, and the senate will pass upon the new officer. If insufficient, the displaced officer is to be restored. This amendment is substantially The amendment was in the following words: Be it furtherenacted, that in all instances of appointment to office by the president, by and with the advice and consent of the senate, the power of removal shall be exercised only in concurrence with the senate; and when the senate is not in session, the president may suspend any such officer, communicating his reasons for the sus- pension duing the first month of its succeeding session, and if the senate concur with hm, the officer shall be removed; but it it do not concur with him, the officer shall be restored to office. Mr. Clay was subsequently induced not to urge his amendment at this time 244 THE APPOINTING AND REMOVING POWER. 245 the same proposition, as one which I submitted to the considera- tion of the senate at its last session. Uinder this suspensory power, the president wvill be able to discharge all defaulters or delinquents; and it cannot be doubted that the senate will concur in all such dismissions. On the other hand, it will insure the integrity and independence of the officer, since he will feel that if he honestly and faithfully discharges his official duties, he cannot be displaced arbitrarily, or from mere caprice, or because he has independently exercised the elective franchise. It is contended, that the president cannot see that the laws are faithfully executed unless he possesses the power of removal. That injunction of the constitution, imports a mere general super- intendence, except where he is specially charged with the execu- tion of a law. It is not necessary that he should have the power of dismission. It wvil be a sufficient security against the abuses of subordinate officers, that the eye of the president is upon them, and that he can commilnicate their delinquency. The state executives do not possess this power of dismission. In several, if not all, the states, the governor cannot even dismiss the secretary of state; yet we have heard no complaints of the inefficiency of state executives, or of the administration of the laws of the states. The president has no power to dismiss the judiciary; and it might be asked, with equal plausibility, how he could see that the laws are executed if the judges will not conform to his opinion, and he cannot dismiss them But it is not necessary to argue the general question, in consider- ing either the original bill or the amendment. The former does not touch the power of dismission, and the latter only makes it conditional instead of being absolute. It may be said, that there are certain great officers, heads of departments and foreign ministers, between whom and the presi- dent entire confidence should exist. That is admitted. But, surely, if the president remove any of them, the people ought to know the cause. The amendment, however, does not reach those classes of officers. And supposing, as I do, that the legislative authority is competent to regulate the exercise of the power of dismission, there can be no just cause to apprehend, that it will fail to make such modifications and exceptions as may be called for by the public interest; especially as whatever bill may be passed must obtain the approbation of the chief magistrate. And if it should attempt to impose improper restrictions upon the executive authority, that would furnish a legitimate occasion for th'e exercise of the veto. In conclusion, I shall most heartily vote for the bill, with or without the amendment which I have proposed. ON THE PUBLIC LANDS BILL. IN THE SENATE OF THE UNITED STATES, DECEMBER 29, 1835. [NILrs's Weekly Register of January second, 1836, makes the following appropriate remarks. ' We have the pleasure to present the able and beautiful speech of Mr Clay, on again presenting his bill to dispose of the proceeds of the public lands. What an immense good would grow out of the passage of that bill! His history of this bill is very severe, though stated in the mildest terms possible.' The bill offered by Mr. Clay at this session passed the senate, by a vote of twenty-five to twenty; but was laid on the table in the house, by one hundred and four' to eighty-five.] ALTHOUGH I find myself borne down by the severest affliction with'which Providence has ever been pleased to visit me, I have thought that my private griefs ought not longer to prevent me from attempting, ill as I feel qualified, to discharge my public duties. And I now rise, in pursuance of the notice which has been given, to ask leave to introduce a bill to appropriate, for a limited time, the proceeds of the sales of the public lands of the United States, and for granting land to certain states. I feel it incumbent on me to make a brief explanation of the highly important measure which I have now the honor to propose. The bill, which I desire to introduce, provides for the distribution of the proceeds of the public lands in the years 1833, 1834, 1835, 1836, and 1837. among the twenty-four states of the union, and conforms substantially to that which passed in 1833. It is therefore of a temporary character; but if it shall be found to have salutary operation it will be in the power of a future congress to give it an indefinite continuance; and, if otherwise, it will expire by its own terms. In the event of war unfortunately breaking out with any foreign power, the bill is to cease, and the fund which it distributes is to be applied to the prosecution of the war. The bill directs that ten per centum of the net proceeds of the public lands, sold within the limits of the seven new states, shall be first set apart for them, in addition to the five per centum reserved by their several compacts with the United States; and that the residue of the proceeds, whether from sales made in the states or territories shall be divided among the twenty-four states, in proportion to their respective federal population. In this respect the bill conforms to ON THE PUBLIC LANDS BILL. that which was introduced in 1832. For one I should have been willing to have allowed the new states twelve and a half instead of ten per centum, but as that was objected to by the president, in his veto message, and has been opposed in other quarters, I thought it best to restrict the allowance to the more moderate sum. The bill also contains large and liberal grants of land to several of the new states, to place them upon an equality with others to which the bounty of congress has been heretofore extended, and provides that, when other new states shall be admitted into the union, they shall receive their share of the common fund. The net amount of the sales of the public lands in the year 1833 was the sum of three million nine hundred and sixty-seven! thousand six hundred and eighty-two dollars and fifty-five cents; in the year 1834 was four million eight hundred and fifty-seven thousand and six hundred dollars and sixty-nine cents; and in the year 1835, according to actual receipts in the three first quarters and an estimate of the fourth, is twelve million two hundred and twenty- two thousand one hundred and twenty-one dollars and fifteen cents; making an aggregate for the three years of twenty-one million forty-seven thousand four hundred and four dollars and thirty-nine cents. This aggregate is what the bill proposes to distributland pay to the twenty-four states on the first day of May, 1836, upon the principles which I have stated. The difference between the estimate made by the secretary of the treasury and that which I have offered of the product of the last quarter of this year, arises from my having taken, as the probable sun, one third of the total amount of the three first quarters, and he some other conjectural sum. Deducting from the twenty-one million forty-seven thousand four hundred and four dollars and thirty-nine cents the fifteen per centum to which the seven new states, according to the bill, will be first entitled, amounting to two million six hundred and twelve thousand three hundred and fifty dollars and eighteen cents, there will remain for distribution among the twenty-four states of the union the sum of eighteen million four hundred and thirty-five thousand and fifty-four dollars and twenty-one cents. Of this sum the proportion of Kentucky will be nine hundred and sixty thousand nine hundred and forty-seven dollars and forty-one cents, of Virginia the sum of one million five hundred and eighty-one thousand six hundred and sixty-nine dollars and thirty-nine cents, of North Carolina nine hundred and eighty-eight thousand six hundred and thirty-two dollars and forty-two celts, and of Penn- sylvania two million eighty-three thousand two hundred and thirty- three dollars and thirty-two cents. The proportion of Indiana, including the fifteen per centum, will be eight hundred and fifty- five thousand five hundred and eighty-eight dollars and twenty- three cents, of Ohio one million six hundred and seventy-seven thousand one hundred and ten dollars and eighty-four cents, and 247 248 SPEECHES OF HENRY CLAY. of Mississippi nine hundred and fifty-eight thousand nine hundred and forty-five dollars and forty-two cents. And ihe proportions of all the twenty-four states are indicated in a table which I hold in my hand, prepared at my instance in the office of the secretary of the senate, and to which any senator may have access. The grounds on which the extra allowance is made to the new states are, first, their complaint that all lands sold by the federal govern- ment are five years exempted from state taxation; secondly, that it is to be applied in such manner as will augment the value of ihe unsold public lands within them; and, lastly, their recent settlement. It may be recollected that a bill passed both houses of congress, in the session which terminated on the third of March, 1833, for the distribution of the amount received from the public lands, upon the principles of that now offered. The president, in his message at the commencement of the previous session, had specially invited the attention of congress to the subject of the public lands; had adverted to their liberation from the pledge for the payment of the public debt; and had intimated his readiness to concur in any disposal of them which might appear to congress most conducive to the quiet, harmony, and general interest of the American people. After such a message, the president's disapprobation of the bill could not have been anticipated. It was presented to him on the second of March, 1833. It was not returned as the constitution The following is the table referred to by Mr. Clay. atament showing the dividend of each state, (acrordi74g to its federal population.) of the proceeds of the public lands, during the years 1833,1834, and 1835, after deducting from the amount fifteen per centum, preciously allowed to the seven new states. States. Federal population. Share for each state. fifteen per centum Total to new to nfw states. states. Maine...----. 399.437 617,269 New Hampshire 269,326 416,202 Massachusetts... 610,408 943,293 Rhode Island---- 97,194 150,198 Connecticut...... 297,6165 459.996 Vermont........ 250.657 433,713 New York........1.918,553 2,964,834 New Jersey. - 319922 494.391 Pennsylvania .. .. 1,348.072 2,083,233 Delaware-....... 75,432 116,568 Maryland........ 405,843 627,169 Virginia. .... 1,023.503 1,581,669 North Carolina-.. 639,747 988.632 South Carolina.- 455.025 701,495 Georgia........ 429,811 664,208 Kentucky..... 621.832 960,947 Tennessee........ 625,263 966,249 Ohio.........--.935,884 1,446,266 230,844 1,677,110 Louisiana-....... 170.694 265,327 67.661 332.888 Indiana..........343,031 530,102 325.485 855,,588 Illinois. 157,147 242,846 483,760 726.606 Missouri-.- 130,419 201,542 174,354 375.897 Mississippi.--- -110.358 170,541 788403 958.945 Alabama .. - 262,508 405,666 541,940 947,607 [Fractions of dollars are omitted in the above sums.] ON THE PUBLIC LANDS BILL. requires, but was retained by him after the expiration of his official term, and until the next session of congress, which had no power to act upon it. It was understood and believed that, in anticipation of the passage of the bill, the president had prepared objections to it, which he had intended to return with his negative; but he did not. If the bill had been returned, there is reason to believe that it would have passed, notwithstanding those objections. In the house, it had been carried by a majority of more than two thirds. And, in the senate, although there was not the majority on its passage, it was supposed that, in consequence of the passage of the compromise bill, some of the senators who had voted against the land bill had changed their views. and would have voted for it upon its return, and others had left the senate. There are those who believe that the bill was unconstitutionally retained by the president and is now the law of the land. But whether it be so or not, the general government holds the public domain in trust for the common benefit of all the states; and it is, therefore, competent to provide by law that the trustee shall make distribution of the proceeds of the three past years, as well as future years, among those entitled to the beneficial interest. The bill makes such a provision. And it is very remarkable, that the sum which it proposes to distribute is about the gross surplus, or balance, estimated in the treasury on the first of January, 1836. When the returns of the last quarter of the year come in, it wvill probably be found that the surplus is larger than the sum which the bill distributes. But if it should not be, there will remain the seven millions held in the bank of the United States, applicable, as far as it may be received, to the service of the ensuing year. It would be premature now to enter into a consideration of the probable revenue of future years; but, at the proper time, I think it will not be difficult to show that, exclusive of what may be received from the public lands, it will be abundantly sufficient for all the economical purposes of government, in a time of peace. Anid the bill, as I have already stated, provides for seasons of wvar. I wish to guard against all misconception by repealing, what I have heretofore several times said. that this bill is not founded upon any notion of a powver in congress to lay and collect taxes and distribute the amount among the several slates. I think congress possesses no such powver, and has no right to exercise it until such amend- ment as that proposed by the senator from South Carolina (Mr. Calhoun) shall be adopted. But the bill rests on the basis of a clear and comprehensive grant of power to congress over the territories and property of the United States ill the constitution, and upon express stipulations in the deeds of session. Mr. President, I have ever retarded, with feelings of the profoundest regret, the decision which the president of the United States felt himself induced to make -on the bill of 1833. If it had VOL. II. 32 249 SPLECHES OF HENRY CLAY. been his pleasure to approve it, the heads of departments woould not now be taxing their ingenuity to find out useless objects of expenditures, or objects which may be wvell postponed to a more distant day. If the bill had passed, about twenty millions of dollars would have been, during the three last years, in the handd of the several states, applicable by them to the beneficent purposes of internal improvement, education, or colonization. What immense benefits might not have been diffused throughout the land by the active employment of that large sum What new channels of commerce and communication might not have been opened What industry stimulated, what labor rewarded How many youthful minds might have received the blessings of educa- tion and knowledge, and been rescued from ignorance, vice, and ruin How many descendants of Africa might have been trans- ported from a cou;ntry where they never can enjoy political or social equality, to the native land of their fathers, where no impediment exists to their attainment of the highest degree of elevation, intel. tectual, social, and political Where they might have been successful instruments, in the hands of God, to spread the religion of his son, and to lay the foundations of civil liberty! And, sir, when we institute a comparison between what might have been effected, and what has been in fact done, with that large amount of national treasure, our sensations of regret, on account of the fate of the bill of 1833, are still keener. Instead of its being dedi- cated to the beneficent uses of the whole people, and our entire country, it has been an object of scrambling amongst local corpora- tions, and locked up in the vaults, or loaned out by the directors of a few of them, who are not under the slightest responsibility to the government or people of the United States. Instead of liberal, enlightened, and national purposes, it has been partially applied to local, limited, and selfish uses. Applied to increase the semi-annual dividends of favorite stockholders in favorite banks Twenty millions of the national treasure are scattered in parcels among petty corporations; and whilst they are growling over the frag- ments and greedy for more, the secretaries are brooding on schemes for squandering the whole. But although we have lost three precious years, the secretary of the treasury tells us that the principal is yet safe, and much good may be still achieved with it. The general government, by an extraordinary exercise of executive power, no longer affords aid to any new works of internal improvement. Although it sprung from the union, and cannot survive the union, it no longer engages in any public improvement to perpetuate the existence of the union. It is but justice to it to acknowledge, that, with the cooperation of the public-spirited state of Maryland, it effected one national road having that tendency. But the spirit of improvement pervades the IWads in every variety of forma active, vigorous, and enterprising 50 ON THE PUBLIO LANDS BILL. wanting pecuniary aid as well as intelligent direction. The states have undertaken what the general government is prevented from accomplishing. They are strengthening the union by various lines of communication thrown across and through the mountains. New York has completed one great chain. Pennsylvania another, bolder in conception and far more arduous in the execution. Virginia has a similar work in progress, worthy of all her enter- prise and energy. A fourth further south, where the parts of the union are too loosely connected, has been projected, and it can certainly be executed with the supplies which this bill affords, and perhaps not without them. This bill passed, and these and other similar undertakhing completed, we may indulge the patriotic hope that our union will be bound by ties and interests that render it indissoluble. As the general government withholds all direct agency from these truly national works, and from all new objects of internal improvement, ought it not to yield to the states, atwhat is their own, the amount received from the public lands It would thus but execute faith- fully a trust expressly created by the original deeds of cession, or resulting from, tihe treaties of acquisition. With this ample resource, every desirable object of improvement, in every part of our extensive country, may, in due time, be accomplished. Placing this exhaustless fund in the hands of the several members of the confederacy, their common federal head may address them in the glowing language of the British bard, and 'Bid harbors open, publie ways extend, Bid temples worthier of the God ascend. Bid the broad arch the dangerous flood contain, The mole projecting break the roaring main. Back to his bounds their subject sea command, And roll obedient rivers through the land.' The afrair of the public lands was forced upon mie. In the session of 1831 and 1832 a motion from a quarter politiedlly unfriendly to me, was made to refer it to the committee of manu- factures, of which I was a member. I strenuously opposed the reference. I remonstrated, I protested, I entreated, I implored. It was in vain that I insisted that the committee on the public lands was the regular standing committee to which the reference should be made. It was in vain that I contended that the public lands and dornestic manufactures were subjects absolutely incongruous. The unnatural alliance was ordered by the vote of a majority of the senate. I felt that a personal embarrasstnent was intended me. [ felt that the design was to place in my hands a many-edged instrument, which I could not touch without being wounded. Nevertheless I subdued all my repugnance, and I engaged assidu- ously in the task which had been so unkindly assigned me. This, or a similar bill, was the offspring of my deliberations. When SPEECHES OF HENRY CLAY. reported, the report accompanying it was referred by the same majority of the senate to the very committee on the public lands to which I had unsuccessfully sought to have the subject originally assigned, for the avowed purpose of obtaining a counteracting report. But, in spite of all opposition, it passed the senate at that session. At the next, both houses of congress. I confess, I feel anxious for the fate of this measure, less on account of any agency I have had in proposing it, as I hope and believe, than from a firm, sincere, and thorough conviction, that no one measure, ever presented to the councils of the nation, was fraught with so much unmixed good, and could exert such powerful and enduring influence in the preservation of the union itself, and upon some of its highest interests. If I can be instru- mental, in any degree, in the adoption of it, I shall enjoy, in that retirement into which I hope shortly to enter, a heart-feeling satis- faction and a lasting consolation. I shall carry there no regrets, no complaints, no reproaches on my owvn account. When I look back upon my humble origin, left an orphan too young to have been conscious of a father's smiles and caresses, with a widowed mother, surrounded by a numerous offspring, in the midst of pecuniary embarrassments, without a regular education, without fortune, without friends, without patrons, I have reason to be satisfied with my public career. I ought to be thankful for the high places and honors to which I have been called by the favor and partiality of my countrymen, and I am thankful and grateful. And I shall take with me the pleasing consciousness, that, in what- ever station I have been placed, I have earnestly and honestly labored to justify their confidence by a faithful, fearless, and zealous discharge of my public duties. Pardon these personal allusions. I make the motion of which notice has been given. rLeave was then granted, and the bill was introduced, read twice, referred to the committee on the public lands, and ordered to be printed.] 252 ON OUR RELATIONS WITH FRANCE. IN THE SENATE OF THE UNITED STATES, JANUARY 11, 136. [AT this session, the situation of affairs between the United States and France having become serious and alarming. Mr. Clay offered resolutions, calling upon the president 1br information, which, although generally known to the public, he had not then communicated to congress.] IT must be obvious to every observer of passing events, that our afihirs with France are becoming every day more and more serious in their character, and are rapidly tending to a crisis. Mutual irritations are daily occurring, from the animadversions of the public press, and among individuals, in and out of office, in both countries. And a state of feeling, greatly to be deprecated, if we are to preserve the relations of peace, must certainly be the consequence. According to the theory of our constitution, our diplomatic concerns with foreign countries are intrusted to the president of the United States, until they reach a certain point involving the question of peace or war, and then congress is to determine on that momentous question. In other words, the president conducts our foreign intercourse; congress alone can change that intercourse from a peaceable to a belligerent one. This right, to decide the question of war, carries along with it the right to know whatever has passed between our own executive and the government of any foreign power. No matter what may be the nature of the corres- pondence, whether official or not, whether formal or informal, congress has the right to any and all information whatever, which may be in the possession of the other branch of the government. No senator here could have failed to have been acquainted with the fact, that the contents of a most important despatch or docu- ment has been discussed, and a most important overture canvassed in the different newspapers, in private and political circles, by individuals; every body, in fact, knows what has taken place, except the congress of the United States. The papers friendly to the administration-indeed, the whole circle of the American press-are in possession of the contents of a paper which this 254 SPEECHES OF HEENRY CLAY. body has not been yet allowed to see; and I have one journal, a southern administration journal, before me, which states a new and important fact in reference lo it. I have said that our situation with France grows every day more embarrassing; the aspect of our relations with her more and more dark and threatening. I could not, therefore, longer delay in making the following motion. I should have done so before, but for a prevalent rumor that the president would soon make a communication to congress, which would do away the necessity of the resolutions which I now submit, by laying before congress the information, which is the object of my motion. He has not, however, done so, and probably will not, without a call from the senate. Mr. Clay then offered the following resolutions, which were adopted next day. Resolved, that the president be requested to communicate to the senate (if it be not, in his opinion, incompatible with the public interest,) whether, since the termination of the last congress, any overture, formal or informal, official or unofficial, has been made by the French government to the executive of the United States, to accommo- date the difficulties between the two governments, respecting the execution of the convention of the fourth day of July, 1531; and, particularly, uhether a despatch from the duc de Broglie, the French minister of foreian affairs, to the ehargt d'affaites at Washington, was read, and a copy of it furnished by him to the secretary of state, for the purpose of indicating a mode in which these difficulties might be removed. Resolved, also, under the resolution above mentioned, in the event of any such overture having been made, that the president be requested to inform the senate What answer was given to it; and, if a copy of any such despatch was received, that he be further requested to communicate a copy of it to the senate. ADMISSION OF ARKANSAS INTO THE UNION. IN THE SENATE OF THE UNITED STATES, APRIL 11, 1836. JNOTWITHSTANDING the compromise of the slavery question, on the admission of Missouri into the union, many citizens of the northern states were opposed to the admission of Arkansas, agreeably to the terms of the compromise. Mr. Clay, how- ever, adhered to his former opinions, as is shown in his remarks which follow.] MR. CtAY rose to present several petitions which had come into his hands. They were signed by citizens of Philadelphia, many of whom were known to be of the first respectability, and the others were, no doubt, entitled to the highest consideration. The petitions were directed against the admission of Arkansas into the union, while there was a clause in her constitution prohibiting any future legislation for the abolition of slavery within her limits. He had felt considerable doubt as to the proper disposition which he should make of these petitions, while he wished to acquit him- self of the duty intrusted to him. The bill for the admission of Arkansas had passed the senate, and gone to the other house. It was possible that it would be returned from that branch with an amendment, which would bring this subject into consideration. He wished the petitioners had selected some other organ. He did not concur in the prayer of the petitioners. He thought that Arkansas, and another state or territory south of forty degrees, had the entire right, according to the compromise made on the Missouri question, to frame its constitution, in reference to slavery, as it might think proper. He adhered to the opinions on this point which he held on a former memorable occasion, which would be in the recollection of senators. He would onlv ask that one of these memorials be read, and that the whole of them should then be laid on the table. [Mvr. King. of Alabama, expressed his regret that the senator from Kentucky had introduced these petitions, while a bill was pending in the other branch, in the pro- gress of which it was probable that this question would be stirred. If the presenta- tion of these petitions should bring up again the agitation which was produced by the discussion of the Missouri question, it would be difficult to predict the conse- quences which might ensue. When the Missouri question was under consideration, he acted with the senator from Kentucky, and agreed to give up certain lights of the SPEECHES OF HENRY CLAY. new states for the purpose of conciliation. But he would now say, that never again would he give up any thing for the purpose of conciliating another quarter of the country. He repeated his astonishment and concern, that the senator from Kentucky should have brought forward the petitions.] Mr. Clay said he felt unaffected surprise at the expression of regret contained in the language of the senator from Alabama, as to the presentation of these petitions. I feel no regret. 'The sub- ject of these petitions I do not approve, and I stated my disappro- bation. I should have been happy, had the petitioners chosen another organ. I stated, further, that my opinions were unchanged. But these petitions have been committed to my care. In pre- senting them, I only performed a duty -a duty, in reference to petitions, of a constitutional. almost a sacred character. I have presented the petitions, but I have asked for no other action on them than the mere laying of them on the table, although I might have done so, as the bill is vet before the other branch. It is highly competent to the legislative authority to pass another bill, to control this clause in the constitution of Arkansas. I have asked no such thing. If the question should be stirred in the other branch, as seems to be apprehended by the senator from Alabama, it is better that the petitions are presented here. Here they are. I have merely performed a duty in presenting them; yet I amn chided, chided at least in tone, by the senator from Alabama, for having done so. Sure I am, sir, that in this tone of chiding, there is not another senator on this floor who will participate. As to the principle of compromise, there were several epochs from which gentlemen might take their start. The adoption of the constitution was a compromise; the settlement of the Missouri question was the second epoch; the adjustment of the tariff was the third. The principle illustrated in all these great cases it was highly desirable should be carried out. These persons who now come before congress, think it hard that they should be excluded from any participation in the soil south of forty degrees, which was won by the aid of their treasure and their valor. Perhaps the hardship was equally severe on those whose habits have rendered them familiar with slavery, that they are virtually excluded from a residence in any of the states north of the line of forty. He concluded with saving, that he had defended the principle of com- promise, in the Missouri question, with as much zeal, if not as much ability, as the senator from Alabama. [The petitions were then laid on the table.] .I 256 ON THE FORTIFICATION BILL. IN THE SENATE OF THE UNITED STATES, JUNE 29, 1836. IIN consequence of the threatening appearance of our affairs with France, which at one time rendered a war with that nation probable, congress, at the session of 1833 , passed a bill making large appropriations for building and repairing fortifications on the Atlantic coast. Mr. Clay opposed the bill on account of the extravagant amount proposed to be appropriated, as is shown in the following brief remarks on the subject.] MR. CLAY thought there was no inconsistency between the two propositions to amend the bill as proposed by the senator from South Carolina, with the view of reducing the amount proposed for fortifications, and to amend it as proposed by the senator from Delaware, to restrain the issue of money from the public treasury, except as it should be called for in a course of regular disburse- ment. Both might be well adopted, and he hoped would be. He had, however, risen more particularly for the purpose of calling the attention of the senate to the enormous and alarming amount of appropriations which had been actually made, or were in progress, during this session. He had procured from the secre- tary of the senate a statement of such as had been made by bills which had passed one or both houses up to the twenty-seventh of last month, when it amounted to about twenty-five millions. Since then, other bills had passed, which swelled it up to thirty-two or three millions; and other bills were now in progress, and would probably pass, carrying it up to forty millions, or beyond that sum. Forty millions of dollars in one year, when we have no debt, and no foreign war! Will not the country be justly alarmed, pro- foundly astonished, when it hears of these enormous appropria- tions Is it possible to proceed with the government on such a scale of expenditure Why, sir, it is a greater amount than is appropriated to similar objects by the British parliament, since its reform, in one year. The whole revenue of Great Britain is about forty-two millions sterling, of which sum twenty-eight millions is applied to the public debt, six to the payment of pensions, annuities, and so forth, VOL. II. 33 SPEECHES OF HENRY CLAY. and only about eight millions to the current annual expenses of the whole of their vast establishments, military and naval, and the civil government at home and abroad. Now, forty millions of dollars exceed eight millions sterling. Who would have supposed that an administration, which came in upon pledges and promises of retrenchment, reform, and economy, should, in the eighth year of its rule, have swelled the expenditure of the government to an amount exceeding that of Great Britain And this surprise must be increased, when we reflect that the British parliament stands to the people of Great Britain in the double relation of the federal and state governments to the people of the United States. When Mr. Adams left the administration, the current annual expenses of the government, exclusive of the public debt, amounted to about twelve millions. Only a few years ago, a secretary of the treasury under the present administration, (Mr. McLane,) esti- mated the ordinary expenses of the government at fifteen millions annually. Even during the present session, the able senator from New York, when the land bill was under' discussion, placed them, for a series of succeeding years, at eighteen millions. And now we propose, in this year, to more than treble the amount of expenditure during the extravagant administration, as it was charged, of Mr. Adams! Mr. Clay hoped the senate would pause. He called upon the friends of the administration, in no taunting or reproachful spirit, to redeem the pledges and promises with which they came into power. If the love of country, if a faithful discharge of duty to the people, if a just economy, would not animate them, and stay these extravagant appropriations, he hoped the devotion to party would. Could they expect to continue in power, (and he candidly confessed, that he was not particularly anxious that they should,) with such unexampled appropriations How can they meet their constitu- ents with these bills staring them in the face And for what purpose shall they be made Does any man believe, will any senator rise in his place and say, that these immense appropriations can be prudently, safely, and wisely disbursed He had, indeed, heard that it was not expected they would be. He had heard, what was too wicked, profligate, and monstrous for him to believe, that it was intended to withdraw the appropriations from the public treasury, place them to the credit of disbursing officers, in the custody of local banks, and thus elude the operation of the deposit bill, which has recently passed. That bill had been demanded by the people of this country. It had passed from a profound sense of duty, in consequence of that demand, by unprecedented majorities in both houses. And he would not allow himself for a moment to believe, that a sinister design existed any where, to elude the operation of that great and salutary measure. What, sir! is the money of the people of this 2-58 ON THE FORTIFICATION BILL. country, to be held in the deposit banks, one of which, according to a statement going the rounds of the papers, has made fourteen and a half per centum dividend for six months The annual average appropriations for fortifications heretofore, have been about seven hundred and fifty or eight hundred thousand dollars; and by the bill now before us, and that for a similar object which we have sent to the house, if both pass, we shall have appro- priated for fortifications for one year, four millions and a half. Is it possible in one year judiciously to expend this enormous sum When we look at the price of labor, the demands upon it for an increase of the army, for volunteers, and for the general avoca- tions of society, does any body believe, that this vast sum can be judiciously laid out It has been said, that, having omitted to make any appropriation last year, we ought this year to appropriate double the ordinary sum. But, if you cannot safely expend it, why should that be done He was willing to make large and liberal appropriations for the navy and for fortifications; we ought, however, to look to all our great interests, and regulate the appro- priations in reference to a survey of the whole country; and he earnestly entreated the senate to fulfil the hopes and expectations which had been recently inspired in the people of this country, by checking and putting itself decidedly against this rash, wild, and ruinous extravagance. He would vote for the commitment, to reduce the appropriations one half; after which there would remain an amount equal to double the ordinary annual appropriations, without including the sum in the bill now before the house. 259 ON RECOGNISING THE INDEPENDENCE OF TEXAS. IN THE SENATE OF THE UNITED STATES, JULY 1, 1836. [IN March, 1836, a convention of forty-four delegates assembled at the town of Washington, in Texas, and made a formal declaration of independence and separation from the republic of Mexico. A previous declaration had been made by a few indi- viduals in Texas, in December, 1835. On the twenty-first of April, 1836, a decisive battle was fought on the banks of the San Jacinto river, between the Texans and Mexicans, in which the latter were defeated, and president Santa Ana taken prisoner. An armistice was concluded in May, 1836, between Santa Ana and the president of Texas, Mr. Burnet, by which the former was released and sent home, and the Mexican troops evacuated the territory of Texas; Santa Ana agreeing not to take up arms, nor to exercise his influence against Texas during the war of independence. Under these circumstances, a proposition was brought before congress to acknowledge the independence of Texas, when Mr. Clay expressed his sentiments as follows. Mr. Preston made some remarks, in the course of which he stated, that he had with difficulty restrained himself from offering an amendment to recognise the inde- pendence of Texas immediately. He gave a brief narrative of the events of the revolution in Texas, and stated that he had this morning received authentic informa- tion, in the form of a letter from Mr. Austin, which confirms the statement that general Filasola had carried into effect the armistice agreed on between the Texian government and Santa Ana. This treaty Mr. Preston regarded as amounting to a recognition, on the part of Mexico, of the independence of Texas. The vice-presi- dent of Texas was about to proceed to Vera Cruz, to enforce from the mouths of the Texian guns the conclusion of a definitive treaty of peace between the two countries. Mr. Preston continued, at some length, to expatiate on the situation and achieve- ments and claims of Texas, and adverted to certain treaty stipulations with Mexico concerning the Indians west of the Sabine,which stipulations it would only be in the power of Texas now to carry into effect. He concluded with offering to amend the resolution, by adding an expression of the gratification which the senate felt on hearing of the course taken by the president of the United States to obtain informa- tion of the situation of Texas. The report of the committee concluded with the following resolution. Resolved, that the independence of Texas ought to be acknowledged by the United States, whenever satisfactory information shall be received that it has in successful operation a civil government, capable of performing the duties and fulfilling the obli- gations of an independent power.] MR. CLAY said, that the report of the committee on foreign relations was so full, and the session was so near its termination, that he had not thought it necessary to add one word to what that document contained; and he should not now have risen but for the amendment proposed by the senator from South Carolina, (Mr. Preston,) and what had fallen from himr. With respect to that amendment, I have no objection to it, and ON TH1E INDEPENDENCE OF TEXAS. wish it to be adopted., The committee on foreign relations had reported a resolution, delaring that Texas ought to be recognised as ail independent power, as soon as satisfactory information is acquired, that it has an established government in successful opera- tion. The president states, in a message received in the senate subsequent to the report, that he has adopted measures to obtain that information. There is, therefore, an entire consistency between the resolution of the committee, the message of the president, and the proposed amendment, and he hoped it would be agreed to. The senator from South Carolina, actuated by very natural and proper feelings, would be glad to propose a stronger measure, one of immediate recognition, but feels restrained by the dictates of his sober judgment. I, too, Mr. President, would be most happy, if the state of our information, and the course of events, were such as to warrant the adoption of that stronger measure. But I do not concur in the opinion which has been expressed, that the actual independence of Texas, by the overthrow or expulsion of the armies of Mexico, is the only consideration which should guide us in deciding the question of recognition. There is another, scarcely of less importance, and that is, whether there is in Texas a civil government in successful operation, competent to sustain the relations of an independent power. This is the very point on which we want information, and that respecting wvhich the presi- dent is, we are given to understand, now endeavoring to obtain it. And, surely, considering how recently Texas has adopted a consti- tution of government, it is not unreasonable to wait a short time to see what its operation will be. But there are other considerations which ought not to be over- looked by a wise and discreet government. We are told by the senator from South Carolina, that the vice-president of Texas is on his way to La Vera Cruz, to negotiate with the Mexican govern- ment a definitive treaty of peace between the two powers, and, consequently, an acknowledgment of the independence of Texas. This fact furnishes an additional motive on the part of the United States for forbearing, at present, to proceed to the formal acknowl- edgment of the independence of Texas. And how much more glorious will it not be for Texas herself, by her own valor, to force from her enemy the first acknowledgment of her independence We ought to discriminate between Santa Ana-the blood- thirsty, vain-boasting, military tyrant, who has met in his overthrow and captivity a merited fate - and the eight millions of Mexicans, over whom he was exercising military sway. We should not allow the feelings of just indignation, which his conduct has excited, to transport us against the perhaps unoffending people whom he has controlled. We ought to recollect, that Mexico is our neighbor, having conterminous territory; that as long as we both 261 SPEECHES OF HENRY CLAY. remain independent powers, we shall stand in that relation to her; that we are carrying on, by sea and by land, a commerce highly beneficial to both parties; and that it is the interest of both to cultivate the most amicable and harmonious intercourse. If we proceed precipitately, and prematurely, how will our conduct be regarded by Mexico May we not lay the foundations of a last- ing and injurious misunderstanding If, indeed, Mexico delays unreasonably the acknowledgment of the independence of Texas, and resolves on the prosecution of the war, I should be far from thinking that the United States ought to postpone, to any distant day, the recognition of Texas, after the desired information is obtained. The senator from South Carolina has supposed it to be necessary to recognise Texas, in order to insure the execution of existing treaties with Mexico. So far as they affect Texas, she is as much bound by them, as if they had been negotiated under her express authority. For I suppose it to be incontestable, that a nation remains bound by all the treaties it has formed, however often it may think proper to change the form of its government; and that all the parts of a common nation also continue so bound, notwithstanding and after they shall have formed themselves into separate and independent powers. Then there are other considerations, which recommend us to act on full information, and with due deliberation. It is undeniable, that many citizens of the United States, impelled by a noble devotion to the cause of liberty, have rushed to the succor of Texas, and contributed to the achievement of her independence. This has been done without the sanction or authority of this government; but it nevertheless exposes us to unworthy imputa- tions. It is known that European powers attribute to our union unbounded ambition, and a desire of aggrandizing ourselves at the expense of our neighbors. The extensive acquisition of terri- tory by the treaties of Louisiana and Florida, peaceful and upon a fair consideration as it was, is appealed to as sustaining the unfounded charge against us. Now, if, after Texas has declared her independence not quite four months ago, we should hasten to acknowledge it, considering the aid afforded by citizens of the United States, should we not give countenance to those imputa- tions Does not a just regard to our own character, as a wise, cautious, and dignified power, a just regard to the opinion of the people of Mexico, and a just regard to that of the impartial world, require that we should avoid all appearance of haste and precipi- tation And, when we have reason to suppose, that not a single hostile bayonet remains in Texas, and when the ceremony of recognition, performed now, or a few months hence, can be of no material consequence to her, is it not better for all parties that we should wait a little while longer. The senator from South Carolina refers to the policy which 262 ON THE TNDEPENDENCE OF TEXAS. has constantly guided our councils in regard to the acknowledg- ment of new powers, or new governments, and he has correctly stated it. But it would not be at all difficult, if it were proper to detain the senate, to show an essential difference between the present instance and the cases of France, of Spanish America, and of Greece, to which he has adverted. There is an obvious differ- ence in the duration of the new governments, and the degree of information which we possess about them. The senate, without the cooperation of the executive in some way, is incompetent to recognise Texas. The president tells us, in his message, that he has adopted measures to acquire necessary information to guide his judgment. We also want it. He cannot be justly accused of having delayed unreasonably to act. There is ground to believe, not only that Texas is independent, but that it has a government in practical operation. I sincerely hope it has; and that it has laid, on deep foundations, perfect securities for liberty, law, and order. In the mean time, every prudential consideration seems to me to require, that we should stop with the resolution and proposed amendment. Such appears to be the deliberate judgment of the senator himself. I sincerely, I most anxiously hope, that the desired information will be soon obtained by the executive; and that the feelings and wishes for the acknowl- edgment of the independence of Texas, which so generally prevail among our constituents, may be speedily gratified. f After some further debate, the resolution was agreed to by a unanimous vote.] 263 ON THE EXPUNGING RESOLUTION. IN THE SENATE OF THE UNITED STATES, JANUARY 16, 1837. [ON the twenty-eighth of March, 1834, the senate of the United States adopted, by a vote of twenty-six to twenty, the following resolution, which was offered by Mr. Clay, relative to the removal of the public deposits from the bank of the United States. ' Resolved, that the president, in the late executive proceedings in relation to the public revenue, has assumed upon himself authority and power not conferred by the constitution and laws, but in derogation of both.' This resolution Mr. Benton, of Missouri, in February, 1835, brought forward a motion to expunge from the journals of the senate; but that body, on the third of March, by a vote of thirty-nine to seven, refused to sustain the motion. Mr. Benton, however, continued to agitate the subject, and, at the session of 1836-7, the majority of the senate having been changed in favor of president Jackson, an expunging resolu- tion was offered by Mr Benton, and, aft er an exciting debate, carried. On this occasion Mr. Clay addressed the senate in the following speech, which may be numbered among his most powerful efforts in the cause of the constitution, and the rights of the legislative against executive power.] CONSIDERING that I was the mover of the resolution of March, 1834, and the consequent relation in which I stood to the majority of the senate by whose vote it was adopted, I feel it to be my duty to say something on this expunging resolution, and I always have intended to do so when I should be persuaded that there existed a settled purpose of pressing it to a final decision. But it was so taken up and put down at the last session -taken up one day, when a speech was prepared for delivery, and put down when it was pronounced - that I really doubted, whether there existed any serious intention of ever putting it to the vote. At the very close of the last session, it will be recollected that the resolution came up, and in several quarters of the senate a disposition was man- ifested to come to a definitive decision. On that occasion, I offered to waive my right to address the senate, and silently to vote upon the resolution; but it was again laid upon the table, and laid there for ever, as the country supposed, and as I believed. It is, however, now revived; and sundry changes having taken place in the members of this body, it would seem that the present design is to bring the resolution to an absolute conclusion. I have not risen to repeat at full length the argument by which the friends of the resolution of March, 1834, sustained it. That argument is before the world, was unanswered at the time, and ON TH-E EXPUNG ING RESOLUTION. is unanswerable. And I here, in my place, in the presence of my country and my God, after the fullest consideration and delibera- tion of which my mind is capable, reassert my solemn conviction of the truth of every proposition contained in that resolution. But whilst it is not my intention to commit such an infliction upon the senate as that would be, of retracing the whole ground of argument formerly occupied, I desire to lay before it at this time, a brief and true state of the case. Before the fatal step is taken, of giving to the expunging resolution the sanction of the American senate, I wish, by presenting a faithful outline of the real questions involved in the resolution of 1834, to make a last, even if it is to be an ineffectual appeal, to the sober judgments of senators. I begin by reasserting the truth of that resolution. Our British ancestors understood perfectly well the immense importance of the money power in a representative government. It is the great lever by which the crown is touched, and made to conform its administration to the interests of the kingdom, and the will of the people. Deprive parliament of the power of freely granting or withholding supplies, and surrender to the king the purse of the nation, he instantly becomes an absolute monarch. Whatever may be the form of government, elective or hereditary, democratic or despotic, that person who commands the force of the nation, and at the same time has uncontrolled possession of the purse of the nation, has absolute power, whatever may be the official name by which he is called. Our immediate ancestors, profiting by the lessons on civil liberty, which had been taught in the country from which we sprung, endeavored to encircle around the public purse, in the hands of congress, every possible security against the intrusion of the executive. With this view, congress alone is invested by the constitution with the power to lay and collect the taxes. When collected, not a cent is to be drawn from the public treasury, but in virtue of an act of congress. And among the first acts of this government, was the passage of a law establishing the treasury department, for the safe keeping and the legal and regular disburse- ment of the money so collected. By that act a secretary of the treasury is placed at the head of the department; and varying in respect from all the other departments, he is to report, not to the president, but directly to congress, and is liable to be called to give information in person before congress. It is impossible to examine dispassionately that act, without coming to the conclusion that he is emphatically the agent of congress in performhing the duties assigned by the constitution of congress. The act further provides that a treasurer shall be appointed to receive and keep the public money, and none can be drawn from his custody but under the authority of a law, and in virtue of a warrant drawn by the secre- tary of the treasury, countersigned by the comptroller, and recorded VOL. IT. 34 265 SPEECHES OF HENRY CLAY. by the register. Only when such a warrant is presented can the treasurer lawfully pay one dollar from the public purse. Why was the concurrence of these four officers required in disbursements of the public money Was it not for greater security Was it not intended that each, exercising a separate and independent will, should be a check upon every other Was it not the purpose of the law to consider each of these four officers, acting in his proper sphere, not as a mere automaton, but as an intellectual, intelligent, and responsible person, bound to observe the law, and to stop the warrant, or stop the money, if the authority of the law were wanting Thus stood the treasury from 1789 to 1816. During that long time no president had ever attempted to interfere with the custody of the public purse. It remained where the law placed it, undis- turbed, and every chief magistrate, including the father of his country, respected the law. In 1816 an act passed to establish the late bank of the United States for the term of twenty years; and, by the sixteenth section of the act, it is enacted, ' That the deposits of the money of the UTnited States in places in which the said bank and the branches thereof may be established, shall be made in said bank or branches thereof, unless the secretary of the treasury shall at any time otherwise order and direct; in which case the secretary of the treasury shall immediately lay before congress, if in session, and if not, immediately after the commencement of the next session, the reasons of such order or direction.' Thus it is perfectly manifest, from the express words of the law, that the power to make any order or direction for the removal of the public deposits, is confided to the secretary alone, to the absolute exclusion of the president, and all the world besides. And the law, proceeding upon the established principle, that the secretary of the treasury, in all that concerns the public purse, acts as the direct agent of congress, requires, in the event of his ordering or directing a removal of the deposits, that he shall immediately lay his reasons therefor before whom the president No: before congress. So stood the public treasury and the public deposits from the year 1816 to September, 1833. In all that period of seventeen years, running through or into four several administrations of the government, the law had its uninterrupted operation, no chief magistrate having assumed upon himself the power of diverting the public purse from its lawful custody, or of substituting his will to that of the officer to whose care it was exclusively intrusted. In the session of congress of 1832-3, an inquiry had been instituted by the house of representatives into the condition of the bank of the United States. It resulted in a conviction of its entire safety, and a declaration by the house, made only a short time before the adjournment of congress on the fourth of March, 1833, that the public deposits were perfectly secure. This declaration 266 ON THE EXPUNGING RESOLUTION. was probably made in consequence of suspicions then afloat of a design on the part of the executive to remove the deposits. These suspicions were denied by the press friendly to the administration. Nevertheless, the members had scarcely reached their respective homes, before measures were commenced by the executive to effect a removal of the deposits from that very place of safety which it was among the last acts of the house to declare existed in the bank of the United States. In prosecution of this design; Mr. McLane, the secretary of the treasury, who was decidedly opposed to such a measure, was promoted to the department of state, and Mr. Duane was appointed to succeed him. But Mr. Duane was equally convinced with his predecessor, that he was forbidden by every consideration of duty to execute the power with which the law had intrusted the secre- tary of the treasury, and refused to remove the deposits; where- upon he was dismissed fromn office, a new secretary of the treasury was appointed, and, in September, 1833, by the command of the president, the measure was finally accomplished. That it was the president's act was never denied, but proclaimed, boasted, defended. It fell upon the country like a thunderbolt, agitating the union from one extremity to the other. The stoutest adherents of the admin- istration were alarmed; and all thinking men, not blinded by party prejudice, beheld in the act a bold and dangerous exercise of power; and no human sagacity can now foresee the tremendous consequences which will ensue. The measure was adopted not long before the approaching session of congress; and, as the con- currence of both branches might be necessary to compel a restora- tion of the deposits, the object was to take the chance of a possible division between them, and thereby defeat the restoration. And where did the president find the power for this most extra- ordinary act It has been seen that the constitution, jealous of all executive interference with the treasury of the nation, had confined it to the exclusive care of congress by every precautionary guard, from the first imposition of the taxes to the final disbursement of the public money. It has been seen that the language of the sixteenth section of the law of 1816 is express and free fromn all ambiguity; and that the secretary of the treasury is the sole, exclusive depository of the authority which it confers. Those who maintain the power of the president, have to support it against the positive language of the constitution, against the explicit words of the statute, and against the genius and theory of all our institutions. And how do they surmount these insuperable obstacles By a series of far-fetched implications, which, if every one of them were as true as they are believed to be incorrect or perverted, would stop far short of maintaining the power which was exercised. 267 SPEECHES OF HENRY CLAY. The first of these implied powers is, that of dismissal, which is claimed for the president. Of all the questioned powers ever exercised by the government, this is the most questionable. From the first congress down to the present administration, it had never been examined. It was carried then, in the senate, by the casting vote of the vice-president. And those who, at that day, argued in behalf of the power, contended for it upon conditions which have been utterly disregarded by the present chief magistrate. The power of dismissal is nowhere in the constitution granted, in express terms, to the president. It is not a necessary incident to any granted power; and the friends of the power have never been able to agree among themselves as to the precise part of the consti- tution from which it springs. But, if the power of dismissal was as incontestable as it is justly controvertible, we utterly deny the consequences deduced from it. The argument is, that the president has, by implication, the power of dismissal. From this first implication, another is drawn, and that is, that the president has the power to control the officer, whom he may dismiss, in the discharge of his duties, in all cases what- ever; and that this power of control is so comprehensive as to include even the case of a specific duty expressly assigned by law to the designated officer. Now, we deny these results from the dismissing power. That power, if it exists, can draw after it only a right of general superin- tendence. It cannot authorize the president to substitute his will to the will of the officer charged with the performance of official duties. Above all, it cannot justify such a substitution in a case where the law, as in the present instance, assigns to a designated officer exclusively the performance of a particular duty, and commands him to report, not to the president, but to congress, in a case regarding the public purse of the nation, committed to the exclusive control of congress. Such a consequence as that which I am contesting would concentrate in the hands of one man the entire executive power of the nation, uncontrolled and unchecked. It would be utterly destructive of all official responsibility. Instead of each officer being responsible, in his own separate sphere, for his official acts, he would shelter himself behind the orders of the president. And what tribunal, in heaven above or on earth below, could render judgment against any officer for an act, however atrocious, performed by the express command of the pres- ident, which, according to the argument, he was absolutely bound to obey Whilst all other official responsibility would be utterly annihila- ted in subordinated officers, there would be no practical or available responsibility in the president himself. But the case has been supposed, of a necessity for the removal 268 ON THlE EXPUNGING RESOLUTION. of the deposits, and a refusal of the secretary of the treasury to remove them; and it is triumphantly asked if, in such a case, the president may not remove him, and command the deed to be done. That is an extreme case, which may be met by another. Suppose the president, without any necessity, orders the removal from a place of safety to a place of hazard. If there be danger that a president may neglect his duty, there is equal danger that a presi- dent may abuse his authority. Infallibility is not a human attribute. And there is more security for the public in holding the secretary of the treasury to the strict performance of an official duty specially assigned to him, under all his official responsibility, than to allow the president to wrest the work from his hands, annihilate his responsibility, and stand himself practically irresponsible. It is far better that millions should be lost by the neglect of a secretary of the treasury, than to establish the monstrous principle that all the checks and balances of the executive government shall be broken down, the whole power absorbed by one man, and his will become the supreme rule. The argument which I am combating places the whole treasury of the nation at the mercy of the executive. It is in vain to talk of appropriations by law, and the formalities of warrants upon the treasury. Assuming the argument to be correct, what is to prevent the execution of an order from the president to the secretary of the treasury to issue a warrant, without the sanc- tion of a previous legal appropriation, to the comptroller to coun- tersign it, to the register to register it, and to the treasurer to pay it What becomes of that quadruple security which the precaution of the law provided Instead of four substantive and indepen- dent wills, acting under legal obligations, all are merged in the executive voters. But there was in point of fact, no cause, none whatever for the measure. Every fiscal consideration, (and no other had the secretary or the president a right to entertain,) required the deposits to be left undisturbed in the place of perfect safety where by law they were. We told you so at the time. We asserted that the charges of insecurity and insolvency of the bank were without the slightest foundation. And time, that great arbiter of human controversies, has confirmed all that we said. The bank, from documents submitted to congress by the secretary of the treasury at the present session, appears to be able not only to return every dollar of the stock held in its capital by the public, but an addition of eleven per centum beyond it. Those who defend the executive act, have to maintain not only that the president may assume upon himself the discharge of a duty especially assigned to the secretary of the treasury., but that he may remove that officer, arbitrarily, and without any cause, because he refused to remove the public deposits without cause. 269 SPEECHES OF HENRY CLAY. My mind conducts me to a totally different conclusion. I think, I solemnly believe, that the president 'assumed upon himself authority and power not conferred by the constitution and laws, but in derogation of both,' in the language of the resolution. I believed then in the truth of the resolution; and I now in my place, and under all my responsibility, reavow my unshaken conviction of it. But it has been contended on this occasion, as it was in the debate which preceded the adoption of the resolution of 1834, that the senate has no right to express the truth on any question which by possibility, may become a subject of impeachment. It is manifest, that if it may, there is no more usual or appropriate form in which it may be done than that of resolutions, joint or separate, orders, or bills. In no other mode can the collective sense of the body be expressed. But senators maintain, that no matter what may be the executive encroachment upon the joint powers of the two houses, or the separate authority of the senate, it is bound to stand mute, and not breathe one word of complaint or remon- strance. According to the argument, the greater the violation of the constitution or the law, the greater the incompetency of the senate to express any opinion upon it! Further, that this incom- petency is not confined to the acts of the president only, but extends to those of every officer who is liable to impeachment under the constitution. Is this possible Can it be true Contrary to all the laws of nature, is the senate the only being which has no power of self-preservation; no right to complain or to remonstrate against attacks upon its very existence The argument is, that the senate, being the constitutional tribunal to try all impeachments, is thereby precluded from the exercise of the right to express any opinion upon any official malfeasance, except when acting in its judicial character. If this disqualification exist, it applies to all impeachable officers, and ought to have protected the late postmaster-general against the resolution, unanimously adopted by the senate, declaring that he had borrowed money contrary to law. And it would disable the senate from considering that Treasury order, which has formed such a prominent subject of its deliberations during the present session. And how do senators maintain this obligation of the senate to remain silent, and behold itself stripped, one by one, of all consti- tutional powers, without resistance, and without murmur Is it imposed by the language of the constitution Has any part of that instrument been pointed to which expressly enjoins it No, no, not a syllable. But attempts are made to deduce it by another far-fetched implication. Because the senate is the body which is to try impeach- ments, therefore it is inferred the senate can express no opinion on any matter which may form the subject of impeachment. The con- stitution does not say so. That is undeniable; but senators think so. 270 ON THE EXPUNGING RESOLUTION. The senate acts in three characters, legislative, executive, and judicial; and their importance is in the order enumerated. By far the most important of the three is its legislative. In that, almost every day that it has been in session, from 1789 to the present time, some legislative business has been transacted; whilst in its judicial character, it has not sat more than three or four times in that whole period. Why should the judicial function limit and restrain the legisla- tive function of the senate, more than the legislative should the judicial If the degree of importance of the two should decide which ought to impose the restraint, in cases of conflict between them, none can doubt which it should be. But if the argument is sound, how is it possible for the senate to perform its legislative duties An act in violation of the constitu- tion or laws is committed by the president or a subordinate executive officer, and it becomes necessary to correct it by the passage of a law. The very act of the president in question was under a law to which the senate had given its concurrence. According to the argument, the correcting law cannot originate in the senate, because it would have to pass in judgment upon that act. Nay, more, it cannot originate in the house, and be sent to the senate, for the same reason of incompetency in the senate to pass upon it. Suppose the bill contained a preamble reciting the unconstitutional or illegal act, to which the legislative corrective is applied; according to the argument, the senate must not think of passing it. Pushed to its legitimate consequence, the argument requires the house of representatives itself cautiously to abstain from the expression of any opinion upon an executive act, except when it is acting as the grand inquest of the nation, and considering articles of impeachment. Assuming that the argument is well founded, the senate is equally restrained from expressing any opinion, which vould imply the innocence or the guilt of an impeachable officer, unless it be maintained, that it is lawful to express praise and approbation, but not censure or difference of opinion. Instances have occurred in our past history, (the case of the British minister, Jackson. was a memorable one,) and many others may arise in our future progress, when in reference to foreign powers, it may be important for congress to approve what has been done by the executive, to present a firm and united front, and to pledge the country to stand by and support him. May it not do that If the senate dare not entertain and express any opinion upon an executive measure, how do those who support this expunging resolution justify the acquittal of the president, which it proclaims No senator believed in 1834, that, whether the president merited impeachment or not, he ever would be impeached. In point of fact he has not been, and we have every reason to suppose, that he 271 SPEECHES OF HENRY CLAY. never will be impeached. Was the majority of the senate, in a case where it believed the constitution and laws to have been violated, and the liberties of the people to be endangered, to remain silent, and to refrain from proclaiming the truth, because, against all human probability, the president might be impeached by a majority of his political friends in the house of representatives If an impeachment had been actually voted by the house of representatives, there is nothing in the constitution which enjoins silence on the part of the senate. In such a case, it would have been a matter of propriety for the consideration of each senator to avoid the expression of any opinion on a matter upon which, as a sworn judge, he would be called to act. Hitherto I have considered the question on the supposition, that the resolution of March, 1834, implied such guilt in the president, that he would have been liable to conviction on a trial by impeach- ment before the senate of the United States. But the resolution, in fact, imported no such guilt. It simply affirmed, that he had ' assumed upon himself authority and power not conferred by the constitution and laws, but in derogation of both.' It imputed no criminal motives. It did not profess to penetrate into the heart of the president. According to the phraseology of the resolution, the exceptionable act might have been performed with the purest and most patriotic intention. The resolution neither affirmed his inno- cence, nor pronounced his guilt. It amounts, then, say his friends on this floor, to nothing. Not so. If the constitution be trampled upon, and the laws be violated, the injury may be equally great, whether it has been done with good or bad intentions. There may be a difference to the officer, none to the country. The country, as all experience demonstrates, has most reason to apprehend those encroachments which take place on plausible pretexts, and with good intentions. I put it, Mr. President, to the calm and deliberate consideration of the majority of the senate, are you ready to pronounce, in the face of this enlightened community, for all time to come, and whoever may happen to be president, that the senate dare not, in language the most inoffensive and respectful, remonstrate against any executive usurpation, whatever may be its degree or danger For one, I will not, I cannot. I believe the resolution of March, 1834, to have been true; and that it was competent to the senate to proclaim the truth. And I solemnly believe, that the senate would have been culpably neglectful of its duty to itself, to the constitution, and to the country, if it had not announced the truth. But let me suppose that in all this I am mistaken; that the act of the president, to which exception was made, was in conformity with the spirit of our free institutions, and the language of our constitution and laws; and that, whether it was or not, the senate of 1834 had no authority to pass judgment upon it; what right has 272 ON THE EXPUNG ING RESOLUTION. the senate of 1837, a component part of another congress, to pronounce judgment upon its predecessor How can you, who venture to impute to those who have gone before you an unconsti- tutional proceeding, escape a similar imputation What part of the constitution communicates to you any authority to assign and try your predecessors In what article is contained your power to expunge what they have done And may not the precedent lead to a perpetual code of defacement and restoration of the transactions of the senate, as consigned to the public records Are you not only destitute of all authority, but positively forbidden to do what the expunging resolution proposes The injunction of the constitution to keep a journal of our proceedings is clear, express, and emphatic. It is free from ambiguity; no sophistry can pervert the explicit language of the instrument; no artful device can elude the force of the obligation which it imposes. If it were possible to make more manifest the duty which it requires to be performed, that was done by the able and eloquent speeches, at the last session, of the senators from Virginia and Louisiana, (Messrs. Leigh and Porter,) and at this of my colleague. I shall not repeat the argument. But I would ask, if there were no constitutional requirement to keep a journal, what constitutional right has the senate of this congress to pass in judgment upon the senate of another congress, and to expunge from its journal a deliberate act there recorded Can an unconstitutional act of that senate, supposing it to be so, justify you in performing another unconstitutional act But, in lieu of any argument upon the point from me, I beg leave to cite for the consideration of the senate two precedents; one drawn from the reign of the most despotic monarch in modern Europe, under the most despotic minister that ever bore sway over any people; and the other from the purest fountain of democracy irk this country. I quote from the interesting life of the cardinal Richelieu, written by that most admirable and popular author, Mr. James. The duke of Orleans, the brother of Louis XIII, had been goaded into rebellion by the wary Richelieu. The king issued a decree declaring all the supporters of the duke guilty of high treason, and a copy of it was despatched to the parliament at Paris, with an order to register it at once. The parliament demurred, and proceeded to what was called an arret de partage. 'Richelieu, however. could bear no contradiction in the course which he had laid down for himself;' [how strong a resemblance does that feature of his character bear to one of an illustrious individual whom I will not further deseribe!] ' and hurrying back to Paris with the king, he sent, in the monarch's name, a command for the members of the parliament to present themselves at the Louvre in a body, and on foot. He was obeyed immediately; and the king receiving them with great haughtiness, the keeper of the seals made them a speech, in which he declared that they had no authority to deliberate upon affairs of state; that the business of private individuals they might discuss, but that the will of the monarch in other matters they were alone called upon to register. The king the" tore with his oton hand. the page of the VOL. II. 35 273 SPEECHES OF HENRY CLAY. regiter on, which the arret de partage had been inscribed, and punished with suspension from theirfunctions several of the members of the various courts com i t parli of How repeated acts of the exercise of arbitrary power are likely to subdue the spirit of liberty, and to render callous the public sensibility, and the fate which awaits us, if we had not been recently unhappily taught in this country, we may learn from the same author. ' The finances of the state were exhausted, new impositions were devised, and a number of new offices created and sold. Against the last-named abuse the parliament ventured to remonstrate; but the government of the cardinal had for its first principle despotism, and the refractory members were punished, some with exile, some with suspension of their functions. All were forced to comply with his will, and the parliament, udable to resist, yielded, step by step, to his exactions.' The other precedent is suspended by the archives of the demo- cracy of Pennsylvania, in 1816, when it was genuine and unmixed with any other ingredient. The provisions of the constitution of the United States and of Pennsylvania, in regard to the obligation to keep a journal, are substantially the same. That of the United States requires that ' Each house shall keep a journal of its proceedings, and from time to time publish the same, except such parts as may in their judgment require secrecy; and the yeas and nays of the members of either house on any question shall, at the desire of one fifth of the members present, be entered on the journal.' And that of Pennsylvania is, 'Each house shall keep a journal of its proceedings, and publish them weekly, except such parts as require secrecy, and the yeas and nays of the members on any question shall, at the desire of any two of them, be entered on the journals.' Whatever inviolability, therefore, is attached to a journal, kept in conformity with the one constitution, must be equally stamped on that kept under the other. On the tenth of February, 1816, in the house of representatives of Pennsylvania, ' the speaker informed the house that a constitutional question being involved in a decision by him yesterday, on a motion to expunge certain proceedings from the journal, he was desirous of having the opinion of the house on that decision, namely, that a majority can expunge from the journal any proceedings in which the yeas and nays have not been called. Whereupon Mr. Holgate and Mr. Smith appealed from said decision; and on the question, is the speaker right in his decision the members present voted as follows: yeas three, nays seventy- eight. Among the latter are to be found the two senators now representing in this body the state of Pennsylvania. On the same day a motion was made by one of them, (Mr. Buchanan,) and Mr. Kelly, and read as follows. ' Resolved, that in the opinion of this house, no part of the journals of the house can be expunged, even by unanimous consent.' 274 ON THE EXPUNGING RESOLUTION. The senate observes, that the question arose in a case where the yeas and nays had not been called. Even in such a case, there were but four members, out of eighty-two, who thought it was competent to the house to expunge. Had the yeas and nays been called and recorded, as they were on the resolution of March, 1834, there would not have been a solitary vote in the house of representatives of Pennsylvania in support of the power of expunging. And if you can expunge the resolution, why may you not expunge also the recorded yeas and nays attached to it But if the matter of expunction be contrary to the truth of the case, reproachful for its base subserviency, derogatory to the just and necessary powers of the senate, and repugnant to the constitution of the United States, the manner in which it is proposed to accomplish this dark deed is also highly exceptionable. The expunging resolution, which is to blot out or enshroud the four or five lines in which the resolution of 1834 stands recorded, or rather the recitals by which it is preceded, are spun out into a thread of enormous length. It runs, whereas, and whereas, and whereas, and whereas, and so forth, into a formidable array of nine several whereases. One who should have the courage to begin to read them, unaware of what was to be their termination, would think that at the end of such a tremendous display he must find the very devil. It is like a kite or a comet, except that the order of nature is inverted, and the tail, instead of being behind, is before the body to which it is appended. I shall not trespass on the senate by inquiring into the truth of all the assertions of fact and of principle, contained in these recitals. It would not be difficult to expose them all, and to show that not one of them has more than a colorable foundation. It is asserted by one of them, that the president was put upon his trial and condemned, unheard, by the senate, in 1834. Was that true Was it a trial Can the majority now assert, upon their oaths, and in their consciences, that there was any trial or condemnation During the warmth of debate, senators might endeavor to persuade themselves and the public, that the proceeding of 1834 was, in its effects and consequences, a trial, and would be a condemnation of the president; but now, after the lapse of nearly three years, when the excitement arising from an animated discussion has passed away, it is marvellous that any one should be prepared to assert, that an expression of the opinion of the senate upon the character of an executive act was an arraignment, trial. and conviction of the president of the United States. Another fact, asserted in one of those recitals, is, that the resolu- tion of 1834, in either of the forms in which it was originally presented, or subsequently modified prior to the final shape which it assumed when adopted, would have been rejected by a majority of the senate. What evidence is there in support of this assertion 275 SPEECHES OF HENRY CLAY. None. It is, I verily believe, directly contrary to the fact. In either of the modifications of the resolution, I have not a doubt, that it would have passed! They were all made in that spirit of accom- modation by which the mover of the resolution has ever regulated his conduct as a member of a deliberative body. In not one single instance did he understand from any senator at whose request he made the modification, that, without it, he would vote against the resolution. How, then, can even the senators, who were of the minority of 1834, undertake to make the assertion in question How can the new senators, who have come here since, pledge them- selves to the fact asserted, in the recital of which they could not have had any connusance But all the members of the majority; the veterans and the raw recruits -the six years men and six weeks men -are required to concur in this most unfounded assertion, as I believe it to be. I submit it to one of the latter, (looking toward Mr. Dana, from Maine, here by a temporary appointment from the executive,) whether, instead of inundating the senate with a torrent of fulsome and revolting adulation poured on the president, it would not be wiser and more patriotic to illustrate the brief period of his senatorial existence by some great measure, fraught with general benefit to the whole union Or, if he will not or cannot elevate himself to a view of the interest of the entire country, whether he had not better dedicate his time to an investigation into the causes of an alien jurisdiction being still exercised over a large part of the territory of the state which he represents And why the American carrying trade to the British colonies, in which his state was so deeply interested, has been lost by a most improvident and bungling arrangement Mr. President, what patriotic purpose is to be accomplished by this expunging resolution! What new honor or fresh laurels will it win for our common country Is the power of the senate so vast that it ought to be circumscribed, and that of the president so restricted, that it ought to be extended What power has the senate None, sepa- rately. It can only act jointly with the other house, or jointly with the executive. And although the theory of the constitution supposes, when consulted by him, it may freely give an affirmative or negative response according to the practice, as it now exists, it has lost the faculty of pronouncing the negative monosyllable. When the senate expresses its deliberate judgment, in the form of resolution, that resolution has no compulsory force, but appeals only to the dispassionate intelligence, the calm reason, and the sober judgment of the community. The senate has no army, no navy, no patron- age, no lucrative offices, nor glittering honors to bestow. Around us there is no swarm of greedy expectants, rendering us homage, anticipating our wishes, and ready to execute our commands. How is it with the president Is he powerless. He is felt from one extremity to the other of this vast republic. By means of 276 ON THE EXPUNGING RESOLUTION. principles which he has introduced, and innovations which he has made in our institutions, alas! but too much countenanced by congress and a confiding people, he exercises uncontrolled the power of the state. In one hand he holds the purse, and in the other brandishes the sword of the country. Myriads of dependents and partisans, scattered over the land, are ever ready to sing hosannas to him, and to laud to the skies whatever he does. He has swept over the government, during the last eight years, like a tropical tornado. Every department exhibits traces of the ravages of the storm. Take, as one example, the bank of the United States. No institution could have been more popular with the people, with congress, and with state legislatures. None ever better fulfilled the great purposes of its establishment. But it unfortu- nately incurred the displeasure of the president; he spoke, and the bank lies prostrate. And those who were loudest in its praise are now loudest in its condemnation. What object of his ambition is unsatisfied When disabled from age any longer to hold the sceptre of power, he designates his successor, and transmits it to his favorite. What more does he want Must we blot, deface, and mutilate the records of the country to punish the presumptuousness of expressing an opinion contrary to his own What patriotic purpose is to be accomplished by this expunging resolution Can you make that not to be which has been Can you eradicate from memory and from history the fact, that in March, 1834, a majority of the senate of the United States passed the reso- lution which excites your enmity Is it your vain and wicked object to arrogate to yourselves that power of annihilating the past which has been denied to omnipotence itself Do you intend to thrust your hands into our hearts, and to pluck out the deeply- rooted convictions which are there or is it your design merely to stigmatize us You cannot stigmatize us. ' Ne'er yet did base dishonor blur our name.' Standing securely upon our conscious rectitude, and bearing aloft the shield of the constitution of our country, your puny efforts are impotent, and we defy all your power. Put the majority of 1834 in one scale, and that by which this expunging resolution is to be carried in the other, and let truth and justice, in heaven above and on the earth below, and liberty and patriotism decide the pre- ponderance. What patriotic purpose is to be accomplished by this expunging Is it to appease the wrath, and to heal the wounded pride, of the chief magistrate If he be really the hero that his friends repre- sent him, he must despise all mean condescension, all grovelling sycophancy, all self-degradation, and self-abasement. He would reject with scorn and contempt, as unworthy of his fame, your 277 SPEECHES OF HENRY CLAY. black scratches, and your baby lines in the fair records of his country. Black lines ! Black lines! Sir, I hope the secretary of the senate will preserve the pen with which he may inscribe them, and present it to that senator of the majority whom he may select, as a proud trophy, to. be transmitted to his descendants. And hereafter, when we shall lose the forms of our free institutions, all that now remain to us, some future American monarch, in grati- tude to those by whose means he has been enabled, upon the ruins of civil liberty, to erect a throne, and to commemorate especially this expunging resolution, may institute a new order of knight- hood, and confer on it the appropriate name of the knight of the black lines. But why should I detain the senate or needlessly waste my breath in fruitless exertions. The decree has gone forth. It is one of urgency, too. The deed is to be done; that foul deed, like the blood-stained hands of the guilty Macbeth, all ocean's waters will never wash out. Proceed, then, to the noble work which lies before you, and like other skilful executioners, do it quickly. And when you have perpetrated it, go home to the people, and tell them what glorious honors you have achieved for our common country. Tell them that you have extinguished one of the brightest and purest lights that ever burned at the altar of civil liberty. Tell them that you have silenced one of the noblest batteries that ever thundered in defence of the constitution, and bravely spiked the cannon. Tell them that, henceforward, no matter what daring or outrageous act any president may perform, you have for ever hermetically sealed the mouth of the senate. Tell them that he may fearlessly assume what power he pleases; snatch from its lawful custody the public purse, command a military detachment to enter the halls of the capitol, overawe congress, trample down the constitution, and raze every bulwark of freedom; but that the senate must stand mute, in silent submission, and not dare to raise its opposing voice. That it must wait until a house of represent- atives, humbled and subdued like itself, and a majority of it composed of the partisans of the president, shall prefer articles of impeachment. Tell them, finally, that you have restored the glorious doctrine of passive obedience and non-resistance, and, if the people do not pour out their indignation and imprecations, I have yet to learn the character of American freemen. 278 ON THE SUB-TREASURY BILL. IN THE SENATE OF THE UNITED STATES, SEPTEMBER 25, 1837. (AP'sr the removal of the public deposits from the bank of the United States, by order of president Jackson, in October, 1833, the revenues were collected and disbursed through certain state banks, selected by the secretary of the treasury. In the month of May, 1837, the pressure upon the banks was so great, from a variety of causes, that a general suspension of specie payments took place. In this state of things, Mr. Van Buren, who succeeded general Jackson as president, in March. 1837, issued a procla- mation, calling an extra session of congress, to meet on the first Monday in September. In his message to that body, which contained a majority favorable to his administra- tion, he recommended the adoption of a system of finance, in collecting and disbursing the revenue of the nation, in gold and silver, which was called by its supporters, 'the Independent Treasury,' and by its opponents, 'the Sub- Treasury.' The system had been before proposed in congress, by Mr. Gordon, of Virginia, and rejected, the friends of Mr. Van Buren at that time generally voting against it. On the present occasion, Mr. Clay delivered his sentiments on this novel project, in the following remarks; a bill having been introduced by Mr. Wright, chairman of the committee on finance, embodying the system referred to, which was not finally adopted, until near the close of Mr. Van Buren's administration.] FEELING an anxious desire to see some effectual plan presented, to correct the disorders in the currency, and to restore the prosperity of the country, I have avoided precipitating myself into the debate now in progress, that I may attentively examine every remedy that may be proposed, and impartially weigh every consideration urged in its support. No period has ever existed in this country, in which the future was covered by a darker, denser, or more impenetrable gloom. None, in which the duty was more imperative to discard all passion and prejudice, all party ties, and previous bias, and look exclusively to the good of our afflicted country. In one respect, and I think it a fortunate one, our present difficulties are distitn- guishable from former domestic trouble, and that is their univer- sality. They are felt, it is true, in different degrees, but they reach every section, every state, every interest, almost every man in the union. All feel, see, hear, know their existence. As they do not array, like our former divisions, one portion of the confederacy against another, it is to be hoped that common sufferings may lead to common sympathies and common counsels, and that we shall, at no distant day, be able to see a clear way of deliverance. If the present state of the country were produced by the fault of the SPEECHES OF HIENRY CL.AY. people; if it proceeded from their wasteful extravagance, and their indulgence of a reckless spirit of ruinous speculation; if public measures had no agency whatever in bringing it about; it would, nevertheless, be the duty of government to exert all its energies, and to employ all its legitimate powers, to devise an efficacious remedy. But if our present deplorable condition has sprung from our rulers; if it is to be clearly traced to their acts and operations, that duty becomes infinitely more obligatory; and government would be faithless to the highest and most solemn of human trusts should it neglect to perform it. And is it not too true, that the evils which surround us are to be ascribed to those who have had the conduct of our public affairs In glancing at the past, nothing can be further from my intention than to excite angry feelings, or to find grounds of reproach. It would be far more congenial to my wishes, that, on this occasion, we should forget all former unhappy divisions and animosities. But in order to discover how to get out of our difficulties, we must ascertain if we can, how we got into them. Prior to that series of unfortunate measures which had for its object the overthrow of the bank of the United States, and the discontinuance of its fiscal agency for the government, no people upon earth ever enjoyed a better currency, or had exchanges better regulated, than the people of the United States. Our monetary system appeared to have attained as great perfection as any thing human can possibly reach. The combination of United States and local banks presented a true image of our system of general and state governments, and worked quite as well. Not only within the country had we a local and general currency perfectly sound, but in whatever quarter of the globe American commerce had penetrated, there also did the bills of the United States bank command unbounded credit and confidence. Now we are in danger of having fixed upon us, indefinitely as to time, that medium, an irredeemable paper currency, which, by the universal consent of the commercial world, is regarded as the worst. How has this reverse come upon us Can it be doubted that it is the result of those measures to which I have adverted -When, at the very moment of adopting them, the very consequences which have happened were foretold as inevitable, is it necessary to look elsewhere for their cause Never was prediction more distinctly made; never was fulfilment more literal and exact. Let us suppose that those measures had not been adopted; that the bank of the United States had been rechartered; that the public deposits had remain undisturbed; and that the treasury order had never issued: is there not every reason to believe that we should be now in the enjoyment of a sound currency; that the public deposits would be now safe and forthcoming, and that the suspen- sion of specie payments in May last, would not have happened 280 ON rHE SUB-rREASURY BILL. The president's message asserts that the suspension has proceeded from over-action, over-trading, the indulgence of a spirit of specu- lation, produced by bank and other facilities. I think this is a view of the case entirely too superficial. It would be quite as correct and just, in the instance of a homicide perpetrated by the discharge of a gun, to allege that the leaden ball, and not the man who levelled the piece, was responsible for the murder. The true inquiry is, how came that excessive over-trading, and those exten- sive bank facilities, which the message describes Were they not the necessary and immediate consequences of the overthrow of the bank, and the removal from its custody of the public deposits And is not this proved by the vast multiplication of banks, the increase of the line of their discounts and accommodations, prompted and stimulated by secretary Taney, and the great aug- mentation of their circulation which ensued What occurred in the state of Kentucky, in consequence of the veto of the recharter of the bank of the United States, illustrates its effects throughout the union. That state had suffered greatly by banks. It was generally opposed to the reestablishment of them. It had Tound the notes of the bank of the United States answering all the purposes of a sound currency, at home and abroad, and it was perfectly contented with them. At the period of the veto, it had but a single bank, of limited capital and circula- tion. After it, the state, reluctant to engage in the banking systemn, and still cherishing hopes of the creation of a new bank of the United States, encouraged by the supporters of the late president, hesitated about the incorporation of new banks. But at length, despairing of the establishment of a bank of the United States, and finding itself exposed to a currency in bank notes from adjacent states, it proceeded to establish banks of its own; and since the veto, since 1833, has incorporated for that single state, bank capital to the amount of ten millions of dollars - a sum equal to the capital of the first bank of the United States, created for the whole union. That the local banks, to which the deposits were transferred from the bank of the United States, were urged and stimulated freely to discount upon them, we have record evidence from the treasury department. The message, to reconcile us to our misfortunes, and to exonerate the measures of our own government from all blame in producing the present state of things, refers to the condition of Europe, and especially to that of Great Britain. It alleges that ' In both countries we have witnessed the same redundancy of paper money, and other facilities of credit; the same spirit of speculation; the same partial success; the same difficulties and reverses; and, at length, nearly the same overwhelming catastrophe.' The very clear and able argument of the senator from Georgia, (Mr. King,) relieves me from the necessity of saying much upon VOL. TI. 36 281 SPEECHES OF HENRY CLAY-. this part of the subject. It appears that during the period referred to by the message, of 1833-5, there was, in fact, no augmentation, or a very trifling augmentation, of the circulation of the country, and that the message has totally misconceived the actual state of things in Great Britain. According to the publications to which I have had access, the bank of England, in fact, diminished its circulation, comparing the first with the last of that period, about two and a half millions sterling; and although the joint stock and private banks increased theirs, the amount of increase was neutral- ized by the amount of diminution. If the state of things were really identical, or similar, in the two countries, it would be fair to trace it to similarity of causes. But is that the case In Great Britain a sound currency was preserved by a recharter of the bank of England, about the same time that the recharter of the bank of the United States was agitated here. In the United States we have not preserved a sound currency, in consequence of the veto. If Great Britain were near the same catastrophe, (the suspension of specie payments,) which occurred here, she nevertheless escaped it; and this difference in the condi- tion of the two countries, makes all the difference in the world. Great Britain has recovered from whatever mercantile distresses she experienced; we have not; and when shall we All is bright, and cheerful, and encouraging, in the prospects which lie before her; and the reverse is our unfortunate situation. Great Britain has, in truth, experienced only those temporary embarrassments which are incident to commercial transactions, conducted upon the scale of vast magnitude on which hers are carried on. Prosperous and adverse times, action and reaction, are the lot of all commercial countries. But our distresses sink deeper; they reach the heart, which has ceased to perform its office of circulation in the great concerns of our body politic. - Whatever of embarrassment Europe has recently experienced, may be satisfactorily explained by its trade and connections with the United States. The degree of embarrassment has been marked, in the commercial countries there, by the degree of their connection with the United States. All, or almost all, the great failures in Europe have been of houses engaged in the American trade. Great Britain, which, as the message justly observes, main- tains the closest relations with us, has suffered most, France next, and so on, in the order of their greater or less commercial inter- course with us. Most truly was it said by the senator from Georgia, that the recent embarrassments of Europe were the embarrassments of a creditor, from whom payment was withheld by the debtor, and from whom the precious metals have been unne- cessarily withdrawn by the policy of the same debtor. Since the intensity of suffering, and the disastrous state of things in this country, have far transcended any thing that has occurred in 282 ON THE SUB-TREASURY BILL. Europe, we must look here for some peculiar and more potent causes than any which have been in operation there. They are to be found in that series of measures to which I have already adverted - First, the veto of the bank; Second, the removal of the deposits, with the urgent injunction of secretary Taney upon the banks to enlarge their accommodations; Third, the gold bill, and the demand of gold for the foreign indemnities; Fourth, the clumsy execution of the deposit law; and, Fifth, the treasury order of July, 1836. Here Mr. Clay went into an examination of these measures, to show that the infated condition of the country, the wild speculations, which bad risen to their height when they began to be checked by the preparations of the local banks neces- sary to meet the deposit law of June, 1836, the final suspension of specie payments, and the consequent disorders in the currency, commerce, and general business of the country, were all to be traced to the influence of the measures enumerated. All these causes operated immediately, directly, and powerfully upon us, and their effects were indirectly felt in Europe.] The message imputes to the deposit law, an agency in pro- ducing the existing embarrassments. This is a charge frequently made by the friends of the administration against that law. It is true, that, the banks having increased their accommodations, in conformity with the orders of secretary Taney, it might not have been convenient to recall and pay them over for public use. It is true, also, that the manner in which the law was executed by the treasury department, transferring large sums from creditor to debtor portions of the country, without regard to the commerce or business of the country, might have aggravated the inconvenience. But what do those who object to the law think ought to have been done with the surpluses which had accumulated, and were daily augmenting to such an enormous amount in the hands of the deposit banks Were they to be incorporated with their capital, and remain there for the benefit of the stockholders Was it not proper and just, that they should be applied to the uses of the people from whom they were collected And whenever and however taken from the deposit banks, would not inconvenience necessarily happen The message asserts that the bank of the United States, char- tered by Pennsylvania, has not been able to save itself or to check other institutions, notwithstanding 'the still greater strength it has been said to possess under its present charter.' That bank is now a mere state or local institution. Why is it referred to more than the bank of Virginia, or any other local institution The exalted station which the president fills forbids the indulgence of the supposition, that the allusion has been made to enable the administration to profit by the prejudices which have been excited against it. Was it the duty of that bank, more than any other state bank, to check the local 283 SPEECHES OF HENRY CLAY. institutions Was it not even under less obligation to do so than the deposit banks, selected and fostered by the general government But how could the message venture to assert, that it has greater strength than the late bank of the United States possessed What- ever may be the liberality of the conditions of its charter, it is impossible that any single state could confer upon it faculties equal to those granted to the late bank of the United States - first, in making it the sole depository of the revenue of the United States; and, secondly, in making its notes receivable in the payment of all public dues. If a bank of the United States had existed, it would have had ample notice of the accumulation of public moneys in the local banks; and, by timely measures of precaution, it could have prevented the speculative uses to which they were applied. Such an institution would have been bound by its relations to the government, to observe its appropriations and financial arrangement and wants, and to hold itself always ready promptly to meet them. It would have drawn together gradually, but certainly, the public moneys, however dispersed. Responsibility would have been con- centrated upon it alone, instead of being weakened or lost by diffu- sion among some eighty or ninety local banks, dispersed throughout the country, and acting without any effective concert. A subordinate but not unimportant cause of the evils which at present encompass us, has been the course of the late administra- tion towards the compromise act. The great principle of that act, in respect to our domestic industry, was its stability. It was intended and hoped that, by withdrawing the tariff from their annual discussions in congress, of which it had been the fruitful topic, our manufactures would have a certainty, for a long period, as to the measure of protection extended to them by its provisions, which would compensate any reduction in the amount contained in prior acts. For a year or two after it was adopted, the late administra- tion manifested a disposition to respect it, as an arrangement which was to be inviolable. But for some time past it has been con- stantly threatened from that quarter, and a settled purpose has been displayed to disregard its conditions. Those who had an agency in bringing it forward, and carrying it through congress, have been held up to animadversion; it has been declared by members, high in the confidence of the administration in both houses, to possess no obligatory force beyond any ordinary act of legislation, and new adjustments of the tariff have been proposed in both houses, in direct contravention of the principles of the compromise; and, at the last session, one of them actually passed the senate, against the most earnest entreaty and remonstrance. A portion of the south has not united in these attacks upon the compromise; and I take pleasure in saying, that the two senators from South Carolina, especially, have uniformly exhibited a resolution to adhere to it with perfect honor and fidelity. 284 ON THE1 SU1B-TREASURY BILL. The effect of those constant threats and attacks, coming from those high in power, has been most injurious. They have shown to the manufacturing interest that no certain reliance was to be placed upon the steadiness of the policy of the government, no matter under what solemn circumstances it was adopted. That interest has taken alarm; new enterprises have been arrested, old ones curtailed; and at this moment it is the most prostrate of all the interests in the country. One half in amount, as I have been informed, of the. manufacturers throughout the country, have actually suspended operations, and those who have not, chiefly confine themselves to working up their stock on hand. The consequence has been, that we have made too little at home, and purchased too much abroad. This has augmented that foreign debt, the existence of which so powerfully contributed to the sus- pension, and yet forms an obstacle to the resumption of specie payments. The senator from South Carolina, (Mr. Calhoun,) attributed the creation of the surplus revenue to the tariff policy, and especially to the acts of 1824 and 1828. I do not perceive any advantage, on the present occasion, in reviving or alluding to the former dissensions which prevailed on the subject of that policy. They were all settled and quieted by the great healing measure, (the compromise,) to which I have referred. By that act I have been willing and ready to abide. And I have desired only that it should be observed and executed in a spirit of good faith and fidelity, similar to that by which I have been ever actuated towards it. The act of 1828 was no measure of the friends of the manufac- turers. Its passage was forced by a coalition between their secret and open opponents. But the system of protection of American industry did not cause the surplus. It proceeded from the extra- ordinary sales of the public lands. The receipts, from all sources other than that of the public lands, and expenditures of the years 1833-6, (during which the surplus was accumulating,) both amount to about eighty-seven millions of dollars; thus clearly showing, that the customs only supplied the necessary means of public disbursement, and that it was the public domain that pro- duced the surplus. If the lnd bill had been allowed to go into operation, it would have distributed generally and regularly among the several states the proceeds of the public lands, as they would have been received from time to time. They would have returned back in small streams. similar to those by which they have been collected, animating, and improving, and fructifying the whole country. There would have been no vast surplus to embarrass the govern- inent; no removal of deposits from the bank of the United States to the deposit banks, to disturb the business of the country; no accumulations in the deposit banks of immense sums of public 285 2 SPEECHES OF HENRY CLAY. money, augmented by the circuit it was performing between the land offices and the banks, and the banks and the land offices; no occasion for the secretary of the treasury to lash the deposit banks into the grant of inordinate accommodations; and possibly there would have been no suspension of specie payments. But that bill was suppressed by a most extraordinary and dangerous exercise of executive power. The cause of our present difficulties may be stated in another way. During the late administration we have been deprived of the practical benefit of a free government; the forms, it is true, remained and were observed, but the essence did not exist. In a free, or self-government, the collected wisdom, the aggregate wisdom of the whole, or at least of a majority, moulds and directs the course of public affairs. In a despotism, the will of a single individual governs. In a practically free government, the nation controls the chief magistrate; in an arbitrary government, the chief magistrate controls the nation. And has not this been our situation in the period mentioned Has not one man forced his will on the nation Have not all these disastrous measures -the veto of the bank, the removal of the deposits, the rejection of the land bill, and the treasury order-which have led to our present unfortunate condition, been adopted, in spite of the wishes of the country, and in opposition, probably, to those of the dominant party itself Our misfortune has not been the want of Wisdom, but of firm- ness. The party in power would not have governed the country very ill, if it had been allowed its own way. Its fatal error has been to lend its sanction, and to bestow its subsequent applause and support upon executive acts, which, in their origin, it previ- ously deprecated or condemned. We have been shocked and grieved to see whole legislative bodies and communities approving and lauding the rejection of the very measures which previously they had unanimously recommended! To see whole states aban- doning their long-cherished policy, and best interests, in subser- viency to the executive pleasure! And the numberless examples of individuals who have surrendered their independence, must inflict pain on every patriot bosom. A single case forces itself upon my recollection as an illustration, to which I do not advert from any unkind feelings towards the gentleman to whom I refer, between whom and myself civil and courteous relations have ever existed. The memorial of the late bank of the United States, praying for a recharter, was placed in his hands, and he presented it to the senate. He carried the recharter through the senate. The veto came; and, in two or three weeks afterwards, we behold the same senator at the head of an assembly of the people, in the state-house yard, in Philadelphia, applauding the veto, and con- demning the bank-condemning his own act! Motives lie 286 ON THE SUB-TREASURIY BILL. L, beyond the reach of the human eye, and it does not belong to me to say what they were, which prompted this self-castigation, and this praise of the destruction of his own work; but it is impossi- ble to overlook the fact that this same senator, in due time, received from the author of the veto the gift of a splendid foreign mission! The moral deducible from the past is, that our free institutions are superior to all others, and can be preserved in their purity and excellence only upon the stern condition that we shall for ever hold the obligations of patriotism paramount to all the ties of party, and to individual dictation; and that we shall never openly approve what we secretly condemn. In this rapid, and I hope not fatiguing review of the causes which I think have brought upon us existing embarrassments, I repeat that it has been for no purpose of reproaching or criminat- ing those who have had the conduct of our public affairs; but to discover the means by which the present crisis has been produced, with a view to ascertain, if possible, what (which is by far much more important) should be done by congress to avert its injurious effects. And this brings me to consider the remedy proposed by the administration. The great evil under which the country labors is the suspension of the banks to pay specie; the total derangement in all domestic exchanges; and the paralysis which has come over the whole business of the country. In regard to the currency, it is not that a given amount of bank notes will not now command as much as the same amount of specie would have done prior to the suspen- sion; but it is the future, the danger of an inconvertible paper money being indefinitely or permanently fixed upon the people, that fills them with apprehensions. Our great object should be to reestablish a sound currency, and thereby to restore the exchanges, and revive the business of the country. The first impression which the measures brought forward by the administration make, is, that they consist of temporary expe- dients, looking to the supply of the necessities of the treasury; or, so far as any of them possess a permanent character, its tendency is rather to aggravate than alleviate the sufferings of the people. None of them proposes to rectify the disorders in the actual cur- rency of the country; but the people, the states, and their banks, are left to shift for themselves, as they may or can. The adminis- tration, after having intervened between the states and their banks, and taken them into their federal service, without the consent of the states; after having puffed and praised them; after having brought them, or contributed to bring them, into their present situ- ation; now suddenly turns its back upon them, leaving them to their fate! It is not content with that; it must absolutely discredit their issues. And the very people, who were told by the adminis- tration that these banks would supply them with a better currency, 287 SPEECHES OF HENRY CLAY. are now left to struggle as they can with the very currency which the government recommended to them, but which it now refuses itself to receive! The professed object of the administration is, to establish what it terms the currency of the constitution, which it proposes to accom- plish by restricting the federal government, in all receipts and pay- ments, to the exclusive use of specie, and by refusing all bank paper, whether convertible or not. It disclaims all purposes of crippling or putting down the banks of the states; but we shall better determine the design or the effect of the measures recom- mended, by considering them together, as one system. The first is the sub-treasuries, which are to be made the depos- itories of all the specie collected and paid out for the service of the general government, discrediting and refusing all the notes of the states, although payable and paid in specie. Second, a bankrupt law for the United States, levelled at all the state banks, and authorizing the seizure of the effects of any one of them that stop payment, and the administration of their effects under the federal authority exclusively. Third, a particular law for the District of Columbia, by which all the corporations and people of the District, under severe pains and penalties, are prohibited from circulating, sixty days after the passage of the law, any paper whatever not convertible into specie on demand, and are made liable to prosecution by indictment. Fourth, and last, the bill to suspend the payment of the fourth instalment to the states, by the provisions of which the deposit banks indebted to the government are placed at the discretion of the secretary of the treasury. It is impossible to consider this system without perceiving that it is aimed at, and, if carried out, must terminate in, the total sub- version of the state banks; and that they will all be placed at the mercy of the federal government. It is in vain to protest that there exists no design against them. The effect of those measures can- not be misunderstood. And why this new experiment, or untried expedient The people of this country are tired of experiments. Ought not the adminis- tration itself to cease with them Ought it not to take warning from the events of recent elections Above all, should not the senate, constituted as it now is, be the last body to lend itself to further experiments upon the business and happiness of this great people According to the latest expression of public opinion in the several states, the senate is no longer a true exponent of the will of the states or of the people. If it were, there would be thirty-two or thirty-four whigs to eighteen or twenty friends of the administration. Is it desirable to banish a convertible paper medium, and to substitute the precious metals as the sole currency to be used in 288 ON THE SUB-TREASURY BILL. all the vast extent of varied business of this entire country I think.: not. 'The quantity of precious metals in the world, looking to our fair distributive share of them, is wholly insufficient. A converti- ble paper is a great time-saving and labor-saving instrument, inde- pendent of its superior advantages in transfers and remittances. A friend, no longer ago than yesterday, informed me of a single bank, whose payments and receipts in one day amounted to two millions of dollars. What time would not have been necessary to count such a vast sum The payments, in the circle of a year, in the city of New York, were estimated several years ago at fifteen hundred millions. How many men and how many days would be necessary to count such a sum A young, growving, and enterprising people, like those of the United States, more than ally other, need the use of those credits which are incident to a sound paper system. Credit is the friend of indigentmerit. Of all nations, Great Britain has nmost freely used the credit system; and of all, she is the most prosperous. We must cease to be a commercial people; we must separate, divorce ourselves from the commercial world, and throw ourselves back for centuries, if we restrict our business to the exclusive use of specie. It is objected against a convertible paper system, that it is liable to expansions and contractions; and that the consequence is the rise and fall of prices, and sudden fortunes or sudden ruin. But it is the importation or exportation of specie, which forms the basis of paper, that occasions these fluctuations. It specie alone were the medium of circulation, the same importation or exportation of it would makd it plenty or scarce, and affect prices in the same manner. The nominal or apparent prices might vary in figures, but the sensation upon the community would be as great in the one case as in the other. These alternations (lo not result, therefore, from the nature of the medium, whether that be specie exclusively, or paperconvertible into specie, but from the operationsof coimmerre. It is commerce, at last, that is chargeable Mvilh expansions and contractions; and against commerce, and not its instrument, should opposition be directed. I have heard it urged by the senator from South Carolina, (Mr. Calhoun,) with no little surprise, in the coturse of this debate, that a convertible paper would not answer for a currency, but that ihe true standard of value was to be found in a paper medium not convertible into the precious metals. If there be, in regard to currency, one truth which the uniled experience of' the whole commercial world has established, I had supposed it to be that emissions of paper money constituted the very worst of all conceiv- able species of currency. The objections to it are, first, that it is impracticable to ascertain, a priori, what amount can be issued without depreciation; and, second, that there is no adequate security, and, in the nature of things, none can exist, against VOL. II. 37 289 SPEECHES OF HENRY CLAY. excessive issues. The paper money of North Carolina, to which the senator referred, according to the information which I have received, did depreciate. It was called proc., an abbreviation of the authority under which it was put forth, and it took one and a half, and sometimes two dollars of proc. to purchase one in specie. But if any one desires to understand perfectly the operation of a purely paper currency, let him study the history of the bank of the commonwealth of Kentucky. It wvas established about fifteen or sixteen years ago, with the consent of a majority of the people of that state. It is winding up and closing its career with the almost unanimous approbation of the whole people. It had an authority to issue, and did issue, notes to the amount of about two millions of dollars. These notes, upon. their face, purported an obligation of the bank to pay the holder, on demand, the amount in specie; but it was well known that they would not be so paid. As a security for their ultimate payment, there were, first, the notes of individuals supposed to be well secured, every note put out by the bank being represented by an individual note discounted; secondly, the funds of the state in a prior state bank, amounting to about half a million of dollars; thirdly, the proceeds of a large body of waste lands belonging to the state; and, fourthly, the annual revenue of the state, and public dues, all of which were payable in the notes of the commonwealth bank. Notwithstanding this apparently solid provision for the redemp- tion of the notes of the bank, they began to depreciate shortly after it commenced operation, and in the course of a few months they sunk as low as fifty per centum - two dollars for one specie dollar. They continued depreciated for a long time, until after large amounts of them were called in and burned. They then rose in value, and now, when there is only some fifty or one hundred thousand dollars out, they have risen to about par. This is owing to the demand for them, created by the wants of the remaining debtors to the bank, and their receivability in payment for taxes. The result of the experiment is, that, although it is possible to sustain at about par a purely paper medium to some amount, if the legislative authority which creates it also create a demand for it, it is impracticable to adjust the proportions of supply and demand so as to keep it at par, and that the tendency is always to an excess of issue. The result, with the people of Kentucky, has been a general conviction of the mischiefs of all issues of an irredeemable paper medium. Is it practicable for the federal government to put down the state banks, and to introduce an exclusive metallic currency In the operations of this government, we should ever bear in mind that political power is distributed between it and the states, and that, while our duties are few and clearly defined, the great mass of legislative authority abides with the states. Their banks exist 290 ON THE SUB-TREASURY BILL. without us, independent of us, and in spite of us. We have no constitutional powver or right to put them down. Why, then, seek their destruction, openly or secretly, directly or indirectly, by discrediting their issues, and by bankrupt laws, and bills of pains and penalties. What are these banks, now so decried and denounced Intruders, aliens, enemies, that have found their way into the bosom of our country against our will! Reduced to their elements, and the analysis shows that they consist, first, of stock- holders; secondly, debtors; and, thirdly, bill-holders and other cred- itors. In some one of these three relations, a large majority of the people of the United States stand. In making war upon the banks, therefore, you wage war upon the people of the United States. It is not a mere abstraction that you would kick and cuff, bankrupt and destroy; but a sensitive, generous, confiding people, who are anxiously turning their eyes towards you, and imploring relief. Every blow that you inflict upon the banks, reaches them. Press the banks, and you press them. True wisdom, it seems to me, requires that we should not seek after if we could discover unattainable abstract perfection; but should look to what is practicable in human affairs, and accommo- date our legislation to the irreversible condition of things. Since the states and the people have their banks and will have them, and since we have no constitutional authority to put them down, our duty is to come to their relief when in embarrassment, and to exert all our legitimate powers to retain and enable them to perform, in the most beneficial manner, the purposes of their institution. We should embank, not destroy, the fertilizing stream which sometimes threatens an inundation. We are told, that it is necessary to separate, divorce the govern- ment from the banks. Let us not be deluded by sounds. Senators might as well talk of separating the government from the states, or from the people, or from the country. We are all - people, states, union, banks-bound up and interwoven together, united in fortune and destiny, and all, all entitled to the protecting care of a parental government. You may as well attempt to make the government breathe a different air, drink a different water, be lighted and warmed by a different sun from that of the people! A hard money government, and a paper money people! A government, an official corps - the servants of the people - glittering in gold, and the people themselves, their masters, buried in ruin, and surrounded with rags. No prudent or practical government, will in in its measures run counter to the long-settled habits and usages of the people. Re- ligion, language, laws, the established currency and business of a whole country, cannot be easily or suddenly uprooted. After the denomination of our coin was changed to dollars and cents, many years elapsed before the old method of keeping accounts, in pounds, 291 SPEECHES OF HENRY CLAY. shillings, and pence, was abandoned; and, to ibis day, there are probably some men of the last century who adhere to it. If a fundamental change becomes necessary, it should not be sudden, but conducted by slow and cautious degrees. The people of the United States have been always a paper money people. It was paper money that carried us through the revolution, established our liberties, and made us a free and independent people. And, if the experience of the revolutionary war convinced our ancestors, as we are convinced, of the evils of an irredeemable paper medium, it was put aside only to give place to that convertible paper, which has so powerfully contributed to our rapid advancement, prosperity, and greatness. The proposed substitution of an exclusive metallic currency to the mixed medium with which we have been so long familiar. is forbidden by the principles of eternal justice. Assuming the cur- rency of the country to consist of two thirds of paper and one of specie; and assuming, also, that the money of a country, whatever may be its component parts, regulates all values, and expresses the true amount which the debtor has to pay to his creditor, the cfiect of the change upon that relation, and upon the property of the country, would be most ruinous. AUl property would be reduced in value to one third of its present nominal amount, and every debtor would, i n effect, have to pay three times as much as he had contracted for. The pressure of our foreign debt would be three times as great as it is, whilst the six hundred millions, which is about the sum now probably due to the banks from the people, would be multiplied into eighteen hundred millions. But there are some more specific objections to this project of sub- treasuries, which deserve to be noticed. The first is its insecurity. The sub-treasurer and his bondsmen constitute the only guarantee for the safety of the immense sums of public money which pass through his hands. Is this to be compared with that which is pos- sessed through the agency of banks The collector, who is to be sub-treasurer, pays the money to the bank, and the bank to the dis- bursing officer. Here are three checks; you propose to destroy two of them; and that most important of all, the bank, with its machinery of president, directors, cashier, teller, and clerks, all of whom are so inany sentinels. At the very moment, when the secretary of the treasury tells us how his sub-treasury system. will work, he has communicated to congress a circular, signed by himself, exhibiting his distrust in it; for he directs in that circular that the public mon- eys, when they amount to a large sum, shall be specially deposited wvith these very banks which he would repudiate. In the slate of Kentucky, (other gentlemen can speak of their respective states,) although it has existed but about forty-five years, three treasurers, selected by the legislature for their established characters of honor and probity, proved faithless. And the history of the delinquency 292 ON THE SUB-TREASURY BILL. of one, is the history of all. It commenced in human weakness, yielding to earnest solicitations for temporary loans, with the most positive assurances of a punctual return. In no instance was there originally any intention to defraud the public. We should not expose poor human nature to such temptations. How easy will it be, as has been done, to indemnify the sureties out of the public money, and squander the residue Second, then there is the liability to favoritism. In the receipts, a political partisan or friend may be accommodated in the payment of duties, in the disbursement, in the purchase of bills, in drafts upon convenient and favorable offices, and in a thousand ways. Third, the fearful increase of executive patronage. Hundreds and thousands of new officers are to be created; for this bill is a mere commencement of the system, and all are to be placed under the direct control of the president. The senator from South Carolina, (Mr. Calhoun,) thinks that the executive is now wveak, and that no danger is to be apprehended from its patronage. I wish to God I could see the subject in the same light that he does. I wvish that I could feel free from that alarm at executive encroachments by which he and I were so recently animated. Where and how, let me ask, has that power, lately so fearful and formidable, suddenly become so weak and harmless Where is that corps of one hundred thousand office-holders and dependents, whose organized strength, directed by the will of a single man, was lately held up in such vivid colors and powerful language by a report made by the senator himself When were they disbanded What has become of proscription Its victims may be exhausted, but the spirit and the power which sacrificed them remain unsubdued. What of the dismissing power What of the veto Of that practice of withholding bills contrary to the constitution, still more reprehensible than the abuses of the veto Of treasury orders, put in force and maintained in defiance and contempt of the legislative authority And, although last, not least, of that expunging powver which degraded the senate, and placed it at the feet of the executive Which of all these numerous powers and pretensions has the present chief magistrate disavowed So far from disclaiming any one of them. has he not announced his intention to follow in the very footsteps of his predecessor And has lie not done it Was it against the person of Andrew Jackson, that the senator from South Carolina, so ably cooperated with us No, sir; no, sir; no. It was against his ursurpations, as we believed them, against his arbitrary administration: above all, against that tremendous and frightful augmentation of the power of the executive branch of the government; that we patriotically but vainly contended. The person of the chief magistrate is changed; but there stands the executive power, perpetuated in all its vast magnitude, undiniin- 293 2 SPEECHES OF HENRY CLAY. ished, reasserted, and overshadowing all the other departments of the government. Every trophy which the late president won from them, now decorates the executive mansion. Every power, which he tore from a bleeding constitution, is now in the executive armory, ready, as time and occasion may prompt the existing incumbent, vherever he may be, to be thundered against the liberties of the people. Whatever may have been the motives of the course of others, I owe it to myself and to truth to say, that, in deprecating the elec- tion of general Andrew Jackson to the office of chief magistrate, it was not from any private considerations, but because I considered it wvould be a great calamity to my country; and that, in whatever opposition I made to the measures of his administration, wvhich more than realized my worst apprehensions, I was guided solely by a sense of public duty. And I do now declare my solemn and unshaken conviction, that, until the executive power, as enlarged, extended, and consolidated by him, is reduced within its true constitutional limits, there is no permanent security for the liberties and happiness of this people. Fourth ; lastly, pass this bill, and whatever divorce its friends may profess to be its aim, that perilous union of the purse and the sword, so justly dreaded by our British and revolutionary ancestors, becomes absolute and complete. And who can doubt it, who knows that over the secretary of the treasury at Washington, and every sub-treasurer, the president claims the power to exercise uncontrolled sway, to exact implicit obedience to his will The message states that, in the process both of collection and disbursement of the public revenue, the officers who perform it act under the executive commands; and it argues that, therefore, the custody also of the treasury might as well be confided to the executive care. I think the safer conclusion is directly opposite. The possession of so much power over the national treasure is just cause of regret, and furnishes a strong reason for diminishing it, if possible; but none for its increase, none for giving the whole power over the purse to the chief magistrate. Hitherto I have considered this scheme of sub-treasuries as if it was only what its friends represent it -a system solely for the purpose of collecting, keeping, and disbursing the public money, in specie exclusively, without any bank agency whatever. But it is manifest that it is destined to become, if it be not designed to be, a vast and ramified connection of government banks, of which the principal will be at Washington, and every sub-treasury will be a branch. The secretary is authorized to draw on the several sub-treasurers, in payment for all the disbursements of government. No law restricts him as to the amount or form of his drafts or checks. He may throw them into amounts suited to the purposes of circulation, and give them all the appearance and facilities of 294 ON THE SUB-TREAS U RY BILL. bank notes. Of all the branches of this system, that at New York will be the most important, since about one half of the duties is collected there. Drafts on New York are at par, or comr mand a premium from every point of the union. It is the great money centre of the country. Issued in convenient sums, they will circu- late throughout the whole union as batik notes; and as long as confidence is reposed in them, will be preferred to the specie, which their holders have a right to demand. They will supply a general currency, fill many of the channels of circulation, be a substitute for notes of the bank of the United States, and supplant to a great extent the use of bank notes. The necessities of the people will constrain them to use them. In this wvay they will remain a long time in circulation; and in a few years we shall see an immense portion of the whole specie of the country concentrated in the hands of the branch bank - that is, the sub-treasurer at Newv York -and represented by an equal amount of government paper, dispersed throughout the country. The responsibility of the sub- treasurer will be consequently greatly increased, and the govern- ment will remain bound to guarantee the redemption of all the drafts, checks, or notes, (whatever may be their denomination,) emitted upon the faith of the money in his custody, and, of course, wviI1 lle subject to the hazard of the loss of the amount of specie in the hands of the sub-treasurer. 11; in the commencement of this system, the holders of this government paper shall be required to present it for payment in coin, within a specified time, it will be found inconvenient or impracticable to enforce the restriction, and it will be ultimately abandoned. Is the senate prepared to consent to place not only all the specie that may be collected for the revenue of the country at the whrill of the president, or, which is the same thing, in the custody of persons acting in obedience to his will, but to put him at the head of the most powerful and influential system of government banks that ever existed It is said in the message, that government is not bound to supply the country with the exchanges which are necessary lo the transac- tion of its business. But wvas that the language held during the progress of the contest with the late bank of the United States Was not the expectation held out to the people, that they would be supplied with a better currency, and with better regulated ex- change And did not both the late president and the secretary of the treasury dwell, with particular satisfaction, in several messages and reports, upon the improvement of the currency, the greater amount in exchange, and the reduction of the rates, under the operation of the state bank system, than existed under the bank of the United States Instead of fulfilling his promises then held out, the government now wtraps itself up in its dignity; tells the people that they expect too much of it; that it is not its business 295 2 SPEECHES OF HENRY CLAY. to furnish exchanges; and that they may look to Europe for the manner in which, through the agency of private bankers, the com- merce and business of its countries are supplied with exchange. We are advised to give up our American mode of transacting business through the instrumentality of banking corporations, ill which the interests of the rich and the poor are happily blended, and to establish bankers similar to the Hopes, the Barings, the Rothschilds, the Hotinguers, of Europe; houses which require years of ages to forin and to put in successful operation, and whose vast overgrown capitals, possessed by the rich, exclusively of the poor, control the destiny of nations, and determine the fate of empires. Having, I think, Mr. President, shown that the project of the administration is neither desirable nor practicable, nor within the constitutional power of the general government, nor just; and that it is contrary to the habits of the people of the United Slates, and is dangerous to their liberties, I might here close my remarks; but I conceive it to be the duty of a patriotic opposition not to confine itself merely to urging objections against measures to pro- mote the general prosperity brought forward by those in power. It has further and higher duties lo perform. There may be cir- cumstances in which the opposition is bound formally to present such measures as, in its judgment, are demanded by the exigency of the times; but if it had just reason to believe that they would be unacceptable to those who a/one can adopt them and give them effect, the opposition will discharge its duty by suggesting what it believes ought to be done for the public good. I know, sir, that I have friends whose partiality has induced them to hope that I would be able to bring forwvard some healing measure for the disorders which unhappily prevail, that might prove acceptable. I wish to God that I could realize this hope, but I cannot. The disease is of such an alarming character as to require more skill than I possess; and I regret to be compelled to fear that there is no effectual remedy but that which is in the hands of the suffering patient himself. Still, under a deep sense of the obligation to which I have referred, I declare that, after the most deliberate and anxious con- sideration of wvhich I am capable, I can conceive of no adequate remedy which does not comprehend a national bank as an essen- tial part. It appears to me that a national bank, with such modifi- cations as experience has pointed out, and particularly such as woul(l limit its profits, exclude foreign influence in the government of it, and give publicity to its transactions, is the only safe and certain remedy that can be adopted. The great want of the country is a general and uniform currency, and a point of union, a sentinel, a regulator of the issues of the local banks, and that would be supplied by such an institution. 296i ON THE SUB-TREASURY BILL. I am not going now to discuss, as an original question, the constitutional power of congress to establish a national bank. In human affairs there are some questions, and I think this is one, that ought to be held as terminated. Four several decisions of congress affirming the power, the concurrence of every other department of the government, the approbation of the people, the concurrence of both the great parties into which the country has been divided, and forty years of prosperous experience with such a bank, appear to me to settle the controversy, if any controversy is ever to be settled. Twenty years ago, Mr. Madison, whose opposition to the first bank of the United States is well known, in a message to congress said: ' Waiving the question of the constitutional authority of the legislature to establish an incorporated bank, as being precluded, in my judgment, by repeated recognitions, uinder varied circumstances, of the validity of such an institution, in acts of the legislative, executive, and judicial branches of the government, accompanied by indications, in different modes, of a correspondence of the general will of the nation; the proposed bank does not appear to be calculated to answer the purposes of reviv- ing the public credit, of providing a national medium of circulation, and of aiding the treasury by facilitating the indispensable anticipations of revenue, and by afibrding to the public more durable loans.' To all the considerations upon which he then relied, in treating it as a settled question, are now to be added two distinct and distant subsequent expressions of the deliberate opinion of a republican congress, two solemn decisions of the supreme court of the United States, twenty years of successful experience, and disastrous consequences quickly following the discontinuance of the bank. I have been present, as a member of congress, on the occasion of the termination of the charters of both the banks of the United States; took part in the discussion to which they gave rise, and had an opportunity of extensively knowing the opinions of mem- bers; and I declare my deliberate conviction, that upon neither was there one third of the members in either house who entertain- ed the opinion that congress did not possess the constitutional power to charter a bank. But it is contended, that, however indispensable a bank of the United States may be to the restoration of the prosperity of the country, the president's opinion against it opposes an insuperable obstacle to the establishment of such an institution. It will, indeed, be unfortunate, if the only measure which can bring relief to the people should be presented by the magistrate whose elevated station should render him the most anxious man in the nation to redress existing grievances. The opinion of the president which is relied upon, is that contained in his celebrated letter to S. Williams, and that which is expressed- in the message before us. I must say, with all proper deference, that no man, prior to, or after his election to the chief 297 38 VOL. II. SPEECHES OF HENRY CLAY. magistracy, has a right to say, in advance, that he would not approve of a particular bill, if it were passed by congress. An annunciation of such a purpose is premature, and contrary to the spirit, if not the express letter, of the constitution. According to that instrument, the participation of the president in the legislative power-his right to pass upon a bill-is subsequent, and not previous to, the deliberations of congress. The constitutional provision is, that, when a bill shall have passed both houses, it shall be presented to the president for his approval or rejection. His right to pass upon it results from the presentation of the bill, and is not acquired until it is presented. What would be thought of the judge who, before a cause is brought before the court, should announce his intention to decide in favor of a named party Or of the senate, which shares the appointing power, if it should, before the nomination of a particular individual is made for an office, pass a resolution that it would not approve the nomination of that individual It is clear, that the president places his repugnance to a bank of the United States mainly upon the ground that the popular will has been twice ' solemnly and unequivocally expressed' against it. In this I think the president is mistaken. The two occasions to which he is understood to refer, are the election of general Andrew Jackson in 1832, and his own election in 1836. Now, as to the first, there was not, before it took place, any unequivocal expression of the opinion of the late president against a national bank. There was, in fact, a contrary expression. In the veto message, president Jackson admitted the public convenience of a bank; stated that he did not find in the renewed charter such modifica- tions as could secure his approbation, and added, that if he had been applied to, he could have furnished the model of a bank that would answer the purposes of such an institution. In supporting his reelection, therefore, the people did not intend, by the exercise of their suffrage, to deprive themselves of a national bank. On the contrary, it is within my knowledge, that many voted for him, who believed in the necessity of a bank quite as much as I do. And I am perfectly persuaded, that thousands and tens of thousands sustained his reelection under the full expectation that a national bank would be established during his second term. Nor, sir, can I think that the election of the present chief magis- trate ought to be taken as evidence that the people are against a bank. The most that can be asserted is, that he was elected, the expression of his opinion in the letter to Mr. Williams notwith- standing. The question of the election of a chief magistrate is a complex question, and one of compensations and comparison. All his opinions, all his qualifications are taken into consideration, and compared with those of his competitors. And nothing more is decided by the people, than that the person elected is preferred among the several candidates. They take him as a man takes his 298 ON THE SUB-TREASURY BILL. wife, for better or for worse, with all the good and bad opinions and qualities which he possesses. You might as well argue, that the election of a particular person to the chief magistracy implies that his figure, form, and appearance exhibit the standard of human perfection, as to contend that it sanctions and approves every opinion which he may have publicly expressed on public affairs It is somewhat ungrateful to the people to suppose that the partic- ular opinion of Mr. Van Buren in regard to a United States bank, constituted any, much less the chief recommendation of him to their suffrages. It would be more honorable to him and to them, to suppose that it proceeded from his eininent abilities, and his distinguished services at home and abroad. If we are to look beyond them and beyond him, many believe that the most influ- ential cause of his election was the indorsement of that illustrious predecessor, in whose footsteps he stands pledged to follow. No, sir, no; the simple and naked question of a bank or no bank of the United States was not submitted to the people, and ' twice solemnly and unequivocally' decided against by them. I firmly believe, that if such a question were now submitted to them, the response of a vast majority would be in the affirmative. I hope, however, that no bank will be established or proposed, unless there shall be a clear and undisputed majority of the people and of the states in favor of such an institution. If there be one wanted, and an unequivocal manifestation be made of the popular will that it is desired, a bank will be established. The president's opposition to it is founded principally upon the presumed opposition of the people. Let them demonstrate that he is mistaken, and he will not separate himself from them. He is too good a democrat, and the whole tenor of his life shows that, whatever other divorces he may recommend, the least that he would desire, would be one between him and the people. Should this not prove to be the case, and if a majority should not exist sufficiently large to pass a bank charter in spite of the veto, the ultimate remedy will remain to the people to change their rulers, if their rulers will not change their opinions. But during this debate it has been contended, that the establish- ment of a new bank of the United States would aggravate existing distresses; and that the opinion necessary to put it in operation could not be obtained without prejudice to the local banks. What is the relief for which all hearts are now so anxiously throbbing It is to put the banks again in motion; to restore exchanges, and revive the drooping business of the country. And, what are the obstacles They are, first, the foreign debt; and, secondly, a want of confidence. If the banks were to reopen their vaults, it is apprehended that the specie would be immediately exported to Europe to discharge our foreign debt Now, if a bank of the United States were established, with a suitable capital, the stock of that bank itself would form one of the best subjects of remittance; and an amount of it equal to what remains of the 299 SPEECHES OF HENRY CLAY. foreign debt would probably be remitted, retaining at home or drawing from abroad the equivalent in specie. A great, if not the greatest existing evil is the want of confidence, not merely in the government, but in distant banks, and between the banks themselves. There is no tie or connection binding them together, and they are often suspicious of each other. To this want of confidence among the banks themselves, is to be ascribed that extraordinary derangement in the exchanges of the country. How otherwise can we account for the fact, that the paper of the banks of Mississippi cannot now be exchanged against the paper of the banks of Louisiana, without a discount on the former of ten or fifteen per centum; nor that of the banks of Nashville, without a discount of eight or tell per centum against the paper of the banks of the adjoining state of Kentucky It is manifest, that, whatever may be the medium of circulation, whether it be inconvertible paper, or convertible paper and specie, supposing confidence to exist, the rates of exchange in both cases ought to be nearly the same. But, in times like these, no bank will allow its funds to accumulate, by the operations of exchange, at points where no present use can be made of them. Now, if a bank of the United States were established, with a proper capital, and it were made the sole depository of the public moneys, and its notes were receivable in all government dues, it might commence operations forthwith, with a small amount of specie, perhaps not more than two millions. That sum would probably be drawn from the community, where it is now hoarded and dormant; or if it were taken even from the local banks, they would be more than compensated in the security which they would enjoy, by the remittance of the stock of the new bank to Europe, as a substitute for their specie. Such a new bank, once commencing business, would form a rallying point; confidence would revive, exchanges be again regu- -lated, and the business and prosperity of the country be restored. And it is by no means certain that there would be any actual augmentation of the banking capital of the country, for it is highly probable that the aggregate amount of unsound banks, which can never resume specie payments, would be quite equal to that of the new bank. An auxiliary resolution might be adopted with salutary effect, similar to that which was adopted in 1816, offering to the state banks, as a motive to resume specie payments, that their paper should be received for the public dues; or, as their number has since That period greatly increased, to make the motive more operative, the offer might be confined to one or two banks in each state, known to be trustworthy. Let them, and a bank of the United States. commence specie payments, and all the other sound banks would be constrained, by the united force of public opinion and the law, to follow the example. 300 ON THE SUB-TREASU RY BILL. If, in contrasting the two periods of 1817 and 1837, some advantages for the resumption of specie payments existed at the former epoch, others which distinguish the present greatly prepon- derate. At the first there wvere none except the existence of a public debt, and a smaller number of banks. But then an exhausting war had wasted our means. Now we have infinitely greater wealth, our resources are vastly more developed and increased, our popu- lation nearly doubled, our knowledge of the disease much better, and, what is of the utmost importance, a remedy, if applied now, would be administered in a much earlier stage of the disorder. A general currency, of sound and uniform value, is necessary to the well being of all parts of the confederacy, but it is indispensable to the interior states. The seaboard states have each of them banks, whose paper freely circulates within their respective limits, and serves all the purposes of their business and commerce at their capitals, and throughout their whole extent. The variations in the value of this paper, in passing through those states, from one commercial metropolis to another, are not ordinarily very great. But how are we of the interior to come to the Atlantic cities to purchase our supplies of foreign and domestic commodities, without a general medium The paper of our own banks will not be received but at an enormous discount. We want a general currency, which will serve at home and enable us to carry on our accustomed trade with our brethren of the Atlantic states. And such a currency we have a right to expect. I do not arrogate to myself a right to speak for and in behalf of all the western states; but as a senator from one of them I am entitled to be heard. This union was formed to secure certain general, but highly important objects, of which the common defence, commerce, and a uniform currency, were the leading ones. To the interior states none is of more importance than that of currency. Nowhere is the attachment to the union more ardent than in those states; but if this government should neglect to perform its duty, the value of the union will become impaired. and its very existence in process of time may become endangered. I do believe, that between a sound general currency, and the preser- vation of itself, in full vigor and perfect safety, there is the most intimate connection. If, Mr. President, the remedies which I have suggested were successful, at a former period of our history, there is every reason to hope, that they would again prove efficacious; but let me suppose that they should not, and that some unknown cause, which could not then, should now, thwart their operation, we should have, in any event, the consolation of knowing that we had endeavored to profit by the lessons of experience; and if they failed, we should stand acquitted in the judgment of the people. They are heartily tired of visionary schemes and wild experiments. They wish to 301 SPEECHES OF HENRY CLAY. get out of the woods, into which they have been conducted, back to the plain, beaten, wide road, which they had before trod. How, and when, without such measures as I have suggested, are the state banks to resume specie payments They never can resume without concert; and concert springs from confidence; and confidence from knowledge. But what knowledge can eight hun- dred banks, scattered over our owtn vast territory, have of the actual condition of each other It is in vain that statements of it be periodically published. It depends, at last, mainly upon the solvency of the debtors to the bank; and how, whenever their names are not known, can that be ascertained Instead of coming to the aid of these prostrate institutions, and assisting them by a mild and parental exercise of your power, in a mode sanctioned and approved by experience, you propose to abandon them and the country to their fate. You propose worse, to discredit their paper, to distrust them even as special depositories, and to denounce against them all the pains and penalties of bankruptcy. How, and when, wvil they resume specie payments Never, as far as my information extends, have exertions been greater than those which the banks have generally made, to open again their vaults. It is wonderful that the community should have been able to bear, with so much composure and resignation, the prodigious curtailments which have been made. Confidence reestablished, the foreign debt extinguished, and a national institution created, most of them could quickly resume specie payments, some of them, urged by a high sense of probity, and smarting under severe reproaches, will no doubt make the experiment of resuming and continuing specie payments. They may even go on a while; but without the cooperation of the state banks generally, and without the cooperation of a national bank, it is to be apprehended that they will be again seized with a paralysis. It is my deliberate conviction, that the preservation of the existence of the state banks themselves, depends upon the institution of a national bank. It is as necessary to them as the union is to the welfare of the states in our political system. Wiihout it, no human being can foresee when we shall emerge from the difficulties which surround us. It has been my fortune, several times, to see the country involved in great danger, but never before have I beheld it encompassed with any more menacing and portentous. Entertaining the views which I have presented, it may be asked, why I do not at once propose the establishment of a national bank. I have already adverted to the cause, constituted as congress now is, I know that such a proposition would be defeated; and that it would be, therefore, useless to make it. I do not desire to force upon the senate, or upon the country, against its wvill, if I could, my opinion, however sincerely or strongly entertained. If a national bank be established, its stability and its utility will depend upon the general conviction which is full of its necessity. And 302 ON THE SUB-TREASURY BILL. until such a conviction is deeply impressed upon the people, and clearly manifested by them, it would, in my judgment, be unwise even to propose a bank. Of the scheme of the senator from Virginia, (Mr. Rives,) I think now as I thought in 1834, I do not believe that any practical con- nection of state banks can supply a general currency, be a safe depository of the public moneys, or act efficiently as a fiscal agent of the general government. I was not then opposed to the state banks in their proper sphere. I thought that they could not be relied upon to form exclusively a banking system for the country, although they were essential parts of a general system. The amendment of the senator, considered as a measure to bring about the resumption of specie payments, so much desired, I think must fail. The motive which it holds out of the receiv- ability in all payments to the government of the paper of such banks as may resume at a given day, coupled with the conditions proposed, is wholly inadequate. It is an offer to eight hundred banks; and the revenue, payment of which in their notes is held out as the inducement, amounts to some twenty or twenty-five millions. To entitle them to the inconsiderable extension of their circulation, which would result from the credit given by govern- ment to the paper of all of them, they are required to submit to a suppression of all notes below five dollars, and at no very distant period, to all below twenty. The enlargement of their circulation, produced by making it receivable by government, would be much less than the contraction which would arise from the suppression of the prohibited notes. Besides, if the quality proposed again to be attached to the notes of these local banks was insufficient to prevent the suspension, how can it be efficacious enough to stimu- late a resumption of specie payments I shall, nevertheless, if called upon to give a vote between the project of the administration and the amendment of the senator from Virginia, vote for the latter, because it is harmless, if it effects no good, and looks to the preservation of the state banks; whilst the other is fraught with mischiefs, as I believe, and tends, if it be not designed, to the utter destruction of those institutions. But preferring to either the postponement moved by the senator from Georgia, I shall, in the first instance, vote for that. Such, Mr. President, are the views which I entertain on the present state of our public affairs. It is with the deepest regret that I can perceive no remedy, but such as is in the hands of the people themselves. Whenever they shall impress upon congress a conviction of that which they wish applied, they will obtain it, and not before. In the mean time, let us go home, and mix with and consult our constituents. And do not, I entreat you, let us carry with us the burning reproach, that our measures here display a selfish solicitude for the government itself, but a cold and heart- less insensibility to the sufferings of a bleeding people. 303 ON THE PREEMPTION BILL IN THE SENATE OF THE UNITED STATES, JANUARY 26,1838 ( Tax system of granting preemption rights to settlers on the public lands, or squat- ters, as they are called, being persons who locate themselves on those lands without first obtaining the right by purchase, Mr. Clay has always opposed. In taking this course he has shown his disregard of the effect calculated to be produced on his per- Bonal popularity in the newly settled states, by opposing a measure which he consid- ered detrimental to the interests of the country, however desirable it might be to the pioneers in the new settlements. At the session of congress in 1838, a bill granting pre mption rights to settlers on the public lands was introduced and passed the senate by a large majority, but, while the measure was under consideration, Mr. Clay did not hesitate to oppose it in the following remarks.] MR. CLAY said, that in no shape which should be given to this bill could he give it his vote. In any aspect it was to be consid- ered as a bounty, or a grant of the property of the whole people to a small part of the people; often the speculator; and he would like to know by what authority such a bill could be passed. He regarded it as a reward for the violation of law; as a direct encour- agement to intruding lawlessly on the lands of the United States, and for selecting and taking what the trespasser pleased of the property of the whole people; and he was not to be deterred from the most strenuous opposition to such measures by any denuncia- tion, come from what quarter it might, let these measures be supported by whom they might. But he would not now enter into the consideration of granting the public property in the manner proposed by this bill. He had risen to notice a subject which seemed to have been lost sight of. It had been said, the government lost nothing by preemption; but he could not conceive how the accounts were made out in proof of this assertion. The president tells us, that the whole average amount gained above the minimum price is only about six cents per acre; others state it at two, four, and five cents; and the secretary of the treasury asserted, in his annual report, that the revenue would be augmented by the passage of a preemption law. The preemption law! As if the competition of a fair, open, public sale would not produce more; as if preemptioners would not go to ON THE PREtEPTION BILL. 305 the public sales, if preemption were denied them, and buy their land as reasonably as it could be purchased! Could any one be so stupid as to suppose that the gain on the land could be greater by preemption than by public auction But Mr. Clay wished especially to call the attention of Ihe sen- ate to a document to which he would refer. Two years ago a report from the commissioner of the land office had been sent here by this same secretary of the treasury, the report of a person more conversant with settlements in the western country than perhaps any man in congress, and certainly more than any connected willh the executive government, the late commissioner, Mr. Browvn, ihe late governor of the state of Ohio. What did he say of the loss incurred by preemption laws The document was s urnber two hundred and eleven of the session of 1836. The whole of it was well worthy of deliberate perusal, and it w""as replete wvilh fraud, abominable, execrable fraud, scandalous to the coun1try, scandalous to, the government, and scandalous to the perpetrators. In saying this, Mr. Clay would not denounce any whole class; but he would say that the preemption system was a scheme of heartless and boundless speculation. What does the commis- sioner say 'This office possesses no data whereby to estimate with tolerable accuracy how far the sales of public lands have been effected, in respect to quantity, by the prei'mp- tion act of nineteenth of June, 1834. Considering the great demand for land within the last two years, it remains to be shown that a greater number of acres has been disposed of in that period in conseqluence of the privilege it confers. It is quite im- possible to estimate with satisfactory accuracy the effect that has been produced on !his branch of the revenue by allowing (to those who have. and pretend to, a right of preference) the choice. at the lowest rate, of distinguished sites for towns, and their vicinities, the best mill seats, and the finest farming lands, including those so highly prized for the culture of cotton. The general land office has no certain data for a just calculation of the amount which the treasury has been prevented from receivinig by the operation of this law. but .onsidering the many tens of thousands of claims that have arisen tinder it. and the prevailing desire in the mean while to vest money in public laud, the conclusion seems fair, that the selected spots would have been sold for a price proportioned to their excellence, if no such law, nor any improper conspiracy, had existed. The estimate of three millions of dollars, which I had the honor to submit to you on the twenty-eighth of January last, appears to me now to underrate much rather than m-ignify the difference between the receipts forpreemption concessions, and the sum the same lands would have brought into the treasury, had no impediment laid in tie way of full and free competition for the purchase. 'It is but just, however, to observe, that the revenue from public !an(ls has not been impaired by preemptions alone; and I may be allowed to remark, in this place. that the information, on the subject of the last resolution referred to me. consists of what common fame represents as avowed and notorious, namely: that the public sales are attendedby combinationsoftwo kinds. interested in keeping bids down to the minimum; the one composed of those who have and those who pretend to a right of prefer- ence, and resort to intimidation by threats and actual violence, as exemplified most particularly at the public sales at Chicago, in June. 1835, when and where the con- trolling party is represented to have effectually prevented those from bidding who were not acceptable to themselves; tLe other description formed of persons associated to frustrate the views of individuals desirous of purchasing, who refuse to join their coalition, or submit to their dictation. by compelling the recusants to forego their intended purchases, orgive more than the market value of the lands.' 39 VOL. II. SPEECHES OF HENRY CLAY. Now, resumed Mr. Clay, how did this conspiracy take place He would tell. In September last, the Indian title had been ex- tinguished to a tract of most valuable land in Indiana, at one dollar per acre, by the United States. What was the conse- quence The instant the Indian title was extinguished, there was a rush upon it from all quarters; and if that land should be exposed at public sale, it would be found that these mea, who had seized the property of the people of the United States, would com- bine to intimidate and overawe all competitors, and thereby acquire the land on their own terms. In this way lawless men had often combined, not only without but against the positive authority of law; and here, while vindicating the rights and guarding the prop- erty of the whole people, Mr. Clay would not be awed nor deterred from performing his duty by any personal considerations. He would read no more of this document, senators could read it at their leisure; it was the deliberate judgment of an experienced and intelligent man against the whole system of preemption. But he wished to call the attention of the senate to some official documents, one of which was from a district attorney, he believed of Louisiana. 'Sir: I present, herewith, a number of affidavits in relation to pretemptions obtained by Gabriel H. Tutt, to the southeast quarter, Richard Tutt, to the east half of the northeast quarter, and Benjamin Tutt, to the west half of the north- east quarter, of section number three west, in the land district of Dempolis, in the state of Alabama. These affidavits have been taken by some of the most respectable men in the state of Alabama, and have been sent on to me for the purpose of procur. ing the grant of the above preemptions to be set aside, on the ground that they were obtained by fraud andimposition; and that this is the fact, I entertain no doubt whatever. Shortly before I left Alabama, I was in the immediate vicinity of the above lands, and heard a number of persons speaking of the manner in which they had been paid out; and the opinion was general, without exception, that a most shameful and scan- dalous imposition had been practiced upon the government. There is no doubt that all the lands mentioned were paid out at the instance and for the benefit of James B. Tutt, a man, to my knowledge, of notoriously bad character. Gabriel H. Tutt, as the affidavit shows, is a citizen of Greene county, (the county in which I reside my- self, and I know him well,) and that he never did reside on the quarter section paid out in its name, or near it. his residence in Greene county being at least fifteen or twenty miles from the land paid out in his name. Richard Tutt and Benjamin Tutt are. I believe, both public paupers, and have been so for years; I am confident as to one, and am satisfied in my own mind as to the other. I have known them for several years; they have lived in Greene county, and have been supported at the charge and expense of the county. Neither of them, as the affidavits show, have resided on the lands since they were paid out, and Richard Tutt was not on the land paid out in his name until January, 1834, and had no improvements whatever in 1823.' 'If reckless and unprincipled men can succeed in cheating and defrauding govern- ment, by appropriating and securing to their own use public lands at the minimum price, under acts of bounty and benevolence, pa.ssed for the benefit of honest, enter- prising, and industrious settlers, corruption and venality must and will become the order of the day, wherever there is a quarter section of public land left worth con. tending for: and it is greatly to be feared that this has become too much the cass already. May I ask to be informed of any steps taken by the department in ti matter, as early as convenient V And here are some comments of the receiver of the land office at Mount Salus, who tells u he has been in the public service since 1806. 306 ON THE PREEMPTION BILL. 307 'It is much to be regretted that the surveys are not made, and the lands offered for sale, before the country is settled. Preemption in parts of the country where there are no private claims to adjust, seem to hold out rewards to those who, in the first instance, violate the laws with a view of greatly benefiting themselves, by securing the choice parts at the lowest price, while others, more conscientious, wait for the public sales. It has a very demoralizing effect; the temptation is so great to get land worth five or ten dollars an acre, in many instance., at the government price fbr the poorest land, that witnesses will be found to prove up the occupancy of the land. It occasions severe disputes between the settlers, and much troublesome unthankful service for the officers, all of which would be avoided by hastening the surveys, and immediately offering the land for sale. The witnesses are sometimes probably deceived by not knowing where the subdivisional lines would run if extended through the tracts.' The same officer, in illustrating the subject in another place, says, 'The preejmption system is not a practicable system to dispose of the public lands; and if the president could see the outrageous uproar and confusion in the register's office for one day, I am well convinced he would never sign another preemption law. The preemption rights heretofore were confined to small districts, interspersed with private claims, and the right was given only to actual settlers who resided on the very tract claimed by them, and then only to heads of families, and persons over twenty-one years of age. There were no foating rights. Even that system crated great confusion and fraud in Louisiana, and was generally believed to do more harm than good. I know one considerable battle royal fought on the occasion, and was told by the deputy surveyors that many of the tracts they surveyed, perhaps in the very year the preemption right was obtained, were in a wild state, where they did not see the trace of a human being, and were proved to be in a state of cultivation. At present it is customary for the leader of a party of speculators to agree with a number of dealers, with their witnesses, men, women, and children, to meet on a certain day at the register's office. They come like the locusts of Egypt, and darken the office with clouds of smoke and dust, and an uproar occasioned by whisky and avarice, that a register, at least, can never forget. ' The many different propositions made by members of congress to dispose of the public lands. makes it probable that some change in the system will be effected; I therefore ask your indulgence to make some general remarks on the subject. I have been engage in the land business from the year 1806, first as a deputy surveyor, about one year; then about fifteen years as principal deputy for the western district, Louisiana; four years of which, as one of the commissioners for deciding on and adjusting the claims of that district; and have now been more than eight years reg- ister for the Choctaw land district. I think it is to be regretted, that there is so much feverish anxiety to make alterations in the land system by members of congress, who have not the practical experience necessary to enable them to avoid confusion and endless difficulties. ' The preemption act of the twenty-ninth of May, 1830, is the most unguarded, and in all respects the worst land law that has everbeen passed in the United States. In districts where the public land could not be disposed of for many years, on account of private claims. there seemed to be some necessity for allowing preemptions; but where there are no private claims to be adjusted, the exclusive ad vantage given to those who go on the most choice spots, and that in direct violation of an act of congress, has a very unequal bearing and demoralizing effect. If the whole community, who are equally interested, were authorized by law to make settlements on the public lands, the advantages would seem to be equal; but, if such was the case, I think it likely that it would cause the loss of many lives in the general scramble which would take place. If the preemption right only extended to the forfeited lands, or such as had been improved under the credit system, where the tracts paid for had cost the parties a high pgrice, there would seem to be some reason in it; but that a general sweep should be made of the most valuable lands of the United States by intruders, at as low a price as that which the poorest person in the nation would have to pay for the poorest pine barren, is unreasonable in the extreme.' [Mr. Walker. What is the name of that officer I Gideon Fitz; and this extract is on the forty-ninth page of the document. SPEECHES OF HENRY CLAY. AMr. Clay did not intend at present to go so far into the subject as he had done, hoping for another occasion on which he designed, should God spare his life and health, to speak more fully on the subject, aind endeavor to expose this system of iniquity. Two years ago, according to the official report of commissioner Brown, there was a loss of three millions of dollars, which would not have occurred if the land had been put up fairly in the market- a loss occasioned by ihis system of iniquity, and the combinations which it occasions to keep down the price, and to prevent all com- letition. When the senate should receive the account which Mir. Clay had called for, (by a resolution,) which he hoped they would receive in time for this bill, they would see what amount wuas received at the public sales, what was the average price of each acre sold at the public sales, without confounding them with the private sales, and making an average from the whole. r Mr. Walker, in reply, alluded to a charge made against himself, by an anonymous letter. that he owned half a million of preemption in Mississippi, and to his formal denial, in the senate, that he owned anv land whatever in that quarter, or had any interest there, direct or indirect. He proceeded at considerable length to adduce facts and arguments to invalidate the testimony on which Mr. Clay had depended, and mide some allusion to the preemption part of Mr. Clay's land bill, and charged the old states with grasping after the public lands. Mr. Clay, of Alabama, (rising at the same time with Mr. Clay of Kentucky,) said he had a few words for this distinguished commissioner of the public lands. ( Air. Clay, of Ketucky. A bad, a very bad commissioner.) Mr. Clay, of Alabama, had understood this commissioner to say, that there had been a loss of three millions of dollars. occasioned by preemption laws, which prevented the sale of the public lands. But he wished to call the attention of the senate to some documentary facts, in regard to the assumption that government suffered a loss bv allowing preC mption, and that the land would sell for more under other circum- stances The requisite documents were on the table, (Mr. Clay said,) by which it would appear, that in 1822, there was an average excess of three cents above the minimum price, in 1823 only of five, and in 1824 no more than of two cents. At thait time no general preemption law had been enacted. Afterwards there was a still further falling off, and in 1828 the excess was only one cent; in 1829 the same. These facts would put down the assumption, that government had lost any thing by preemption laws. The document to which Mr. Clay referred had been' obtained -only within the last ten days, and it appeared from that, that up to the present time, the excess had been little more than two cents per acre. Mr. Clay argued, that the preemption laws were calculated to put down fraud instead of encouraging it. The only fraud was that of speculators, and the charge of it against the settlers was utterly groundless. To oppose this system, and to continue that of public auction, was to minister to the cupidity of speculators; and the most effectual remedy against fraud was to be found in prenmption laws.] Mr. Clay, of Kentucky, said he knew how unequal this contest was. A number of senators from the new states were ever ready to spring up and eulogize the preemption laws; but, unequal as it was, while he had a place here, he would contend for those itittrests of the whole people, which he was endeavoring to protect. He would repel the imputation of the senator from Mississippi against the old states. It was not the old states, hut some of the Delw, that were grasping at the public domain. If there was such a spirit any wvhere, it was not in the old states, but somewhere else 308 ON THE PREEIMPTION BILL. The subject of the public lands had been forced upon him by the political party of the senator from Mississippi several years ago. The land bill for distributing the proceeds of them was the conse- quence; but was there anything of grasping, even in that It did not propose to touch the land system, to alter or affect the price or the mode of sale. The old, the tried system was admirable. Under the auspices of such men as Jeremiah Morrow, nothing human could have been more perfect or just. But what did that measure propose To distribute the whole net proceeds of the lands among all the states, old and new, allowing to the new an extra bounty of fifteen per cent. What kind of grasping by the old states was this And how wvas the equitable measure received by some of the new states The senator was mistaken; it wvas not the old states to whom his imputation would apply; the hand that made the grip was thrust from some other quarter. He had no part in the charge against the senator in relation to lands in Mississippi; but how had he made out in his vindication of the officers of the government The commissioner of the land office was not to be believed, because he differed from him; a com- missioner appointed by the immortal Jackson, governor of Ohio, and well worthy to be sent on a foreign mission, was not to be believed, because his views did not agree with those of the senator from Mississippi. But could the senator say that the two or three millions of acres taken up by preemptions might not have pro- duced, at public sales, three millions of dollars, which the commis- sioner had estimated to have been lost Had not the senator himself stated, at a former session, that many of these lands were worth fifty dollars per acre Mr. Clay, after a few remarks on certain frauds in Louisiana, and on the alleged frauds in Mississippi, recurred to the case of the valuable land in Indiana, for which there is a contest between individuals and the legislature. He hoped, if either party should get the land, it would be the whole state. But the legislature was now in session, and what did they seem themselves to think of individual preemption rights, when not the whole union, but that state alone was concerned They gave thirty-nine votes against individual preemption rights, and only five votes in favor. He would read a short account of the debate on this point. [Here Mr. Clay read parts of several speeches in the Indiana legislature, de- nouncing the preemption system, and showing that attempts were made by specu- lotors, under the garb of poor settlers, to appropriate the land which had been recently acquired from the Miami Indians.j Mr. Clay had taxed his recollection in relation to persons in Kentucky, to whom preemption rights had been granted; and he knew of but one man who lived on land granted to him by Vir- ginia as a settler. Mr. Clay was for abiding by, defending, and protecting the land system heretofore existing, against all and every material innovation. 309 ON THE SUB-TREASURY SCHEME. IN THE SENATE OF THE UNITED STATES, FEBRUARY 19, 1838. [THE independent or sub-treasury scheme being pressed upon the consideration of congress, by Mr. Van Buren, although public opinion was setting strongly against it. Mr. Clay delivered the following elaborate speech, in which he shows that a deliberate design had existed on the part of general Jackson, and his successor, Mr. Van Buren, to break down the whole banking system of the United States, and to create on their ruins a government treasury bank, under the exclusive control of the executive. This speech was partly in reply to Mr. Calhoun, of South Carolina, who had become a supporter of the administration.] I HAVE seen some public service, passed through many troubled times, and often addressed public assemblies, in this capitol and elsewhere; but never before have I risen in a deliberative body, under more oppressed feelings, or with a deeper sense of awful responsibility. Never before have I risen to express my opinions upon any public measure, fraught with such tremendous conse- quences to the welfare and prosperity of the country, and so perilous to the liberties of the people, as I solemnly believe the bill under consideration will be. If you knew, sir, what sleepless hours reflection upon it has cost me, if you knew with what fervor and sincerity I have implored divine assistance to strengthen and sustain me in my opposition to it, I should have credit with you, at least, for the sincerity of my convictions, if I shall be so unfortunate as not to have your concurrence as to the dangerous character of the measure. And I have thanked my God that he has prolonged my life until the present time, to enable me to exert myself in the service of my country, against a project far transcending in perni- cious tendency any that I have ever had occasion to consider. I thank him for the health I am permitted to enjoy; I thank him for the soft and sweet repose which I experienced last night; I thank him for the bright and glorious sun which shines upon us this day. It is not my purpose, at this time, Mr. President, to go at large into a consideration of the causes which have led to the present most disastrous state of public affairs. That duty was performed by others, and myself, at the extra session of congress. It was then clearly shown, that it sprung from the ill-advised and unfor- ON THE SUB-TREASURY SCHEME. tunate measures of executive administration. I now will content myself with saying that. on the fourth day of March, 1829, Andrew Jackson, not by the blessing of God, was made president of these United States; that the country then was eminently prosperous; that its currency was as sound and safe as any that a people were ever blessed with; that, throughout the wide extent of this whole union, it possessed a uniform value; and that exchanges were conducted with such regularity and perfection, that funds could be transmitted from one extremity of the union to the other, with the least possible risk or loss. In this encouraging condition of the business of the country, it remained for several years, until after the wvar, wantonly waged against the late bank of the United States, was completely successful, by the overthrow of that invaluable institution. What our present situation is, is as needless to describe as it is painful to contemplate. First felt in our great commercial marts, distress and embarrassment have penetrated into the interior, and now pervade almost the entire union. It has been justly remarked by one of the soundest and most practical writers that I have had occasion to consult, that ' all convulsions in the circula- tion and commerce of every country must originate in the opera- tions of the government, or in the mistaken views and erroneous measures of those possessing the power of influencing credit and circulation; for they are not otherwise susceptible of convulsion; and, if left to themselves, they will find their own level, and flow nearly in one uniform stream.' Yes, Mr. President, we all have but too melancholy a conscious- ness of the unhappy condition of our country. We all too well know, that our noble and gallant ship lies helpless and immovable upon breakers, dismasted, the surge beating over her venerable sides, and the crew threatened with instantaneous destruction. How came she there Who was the pilot at the helm when she was stranded The party in power! The pilot was aided by all the science and skill, by all the charts and instruments, of such distin- guished navigators as Washington, the Adamses, Jefferson, Madi- son, and Monroe; and vet he did not, or could not, save the public vessel. She was placed in her present miserable condition by his bungling navigation, or by his want of skill and judgment. It is impossible for him to escape from one or the other horn of that dilemma. I leave him at liberty to choose between them. I shall endeavor, Mr. President, in the course of the address I am about making, to establish certain propositions, which I believe to be incontestable; and, for the sake of perspicuity, I will state them severally to the senate. I shall contend, First, that it was the deliberate purpose and fixed design of the late administration to establish a government bank -a treasury bank - to be administered and controlled by the executive de- partment. 311 SPEECHES OF HENRY CLAY. Secondly, that, with that view, and to that end, it was its aim and intention to overthrow the whole banking systemi, as existing in the United States when that administration came into power, beginning with the bank of the United States, and ending with the state banks. Thirdly, that the attack was first confined, from considerations of policy, to the bank of the United States; but that, after its over- throw was accomplished, it was then directed, and has since been continued, against the state banks. Fourthly, that the present administration, by its acknowledg- ments, emanating from the highest and most authentic source, has succeeded to the principles, plans, and policy, of the preceding administration, and stands solemnly pledged to complete and perfect them. And, fifthly, that the bill under consideration is intended to execute the pledge, by establishing, upon the ruins of the late bank of the United States, and the state banks, a government bank, to be managed and controlled by the treasury department, acting under the commands of the president of the United States. I believe, solemnly believe, the truth of every one of these five propositions. In the support of them, I shall not rely upon any gratuitous surmises or vague conjectures, but upon proofs, clear, positive, undeniable, and demonstrative. To establish the first four, I shall adduce evidence of the highest possible authenticity, or facts admitted or undeniable, and fair reasoning founded on them. And as to the last, the measure under consideration, I think the testimony, intrinsic and extrinsic, on which I depend, stamps, beyond all doubt, its true character as a government bank, and ought to carry to the mind of the senate the conviction which I entertain, and in which I feel perfectly confident the whole country will share. First. My first proposition is, that it was the deliberate purpose and fixed design of the late administration to establish a government bank - a treasury bank - to be administered and controlled by the executive department. To establish its truth, the first proof which I offer is the following extract from president Jackson's annual message of December, 1829. ' The charter of the bank of the United States erpires in 183G, and its stockholders will most probably apply for a renewal of their privileges. In order to avoid the evils resulting from precipitancy. in a measure involving such important principles, and such deep pecuniary interests. I feel that I cannot, in justice to the parties interested, too soon present it to the consideration of the legislature and the people. Both the constitutionality and the expediency of the law creating this bank, are well qusslioned by a large portion of our fellow-citizens; and it must be admitted by all, that it has failed in the great end of establishing a uniform and sound currency. ' Under these circumstances, if such an institution is deemed essential to the fiscal operations of the government. Isubmit to the wisdom of the legislature, whether a national one, founded upon 1he rredit of the government and its revenues, might not be devised, which would avoid all constitutional difficulties, and, at the same time, secure all the advantages to the government and the country, that were expected to result from the present bank.' 312 ON THE SUB-TREASURY SCHEME. This was the first open declaration of that implacable war against the late bank of the United States, which was af erwvards waged with so much ferocity. It was the sound of the distant bugle, to collect together the dispersed and scattered forces, and prepare for battle. The country saw with surprise the statement, that 'the constitutionality and expediency of the law creating this bank are well questioned by a larg-e portion of our fellowv-ciiizens,' when, in truth and in fact, it was well known that but fewv then doubted the constitutionality, and none the expediency, of it. Arid the assertion excited much greater surprise, that ' it must be admitted by all, that it has failed in the great end of establishing a uniform and sound currency.' In this message, too, whilst a doubt is intimated as to the utility of such an institution, president Jackson clearly first discloses his object to establish a national one, founded upoin the credit of tle government andits revenues. His language is perfectly plain and unequivocal. Such a bank, founded upon the credit of the government and its revenues, would secure all the advantages to the government and the country, he tells us, that were expected to result from the present bank. In his annual message of the ensuing year, the late president says: 'The importance of the principles involved in the inquiry, whether it will be proper to recharter the bank of the United States, requires that I should again call the atten. tion of congress to the subject. Nothing has occurred to lessen. in any (tegree, the dangers which many of our citizens apprehend from that institution, as at present organized. In the spirit of improvement and compromise which distinguishes our country and its institutions, it becomes us to inquire, whether it be not possible to sericre the advantages afforded by the present bank. through the agenry of a banic of the Unuited States, so modified in its principles as to obviate constitutional and other objections. ' It is thought practicable to organize such a bank, with the necessary officers. as a branrh of the treasury department, based on the public and individual deposits, without power to make loans, or purchase property. which shall remit the funds of govern. ment; and the expense of which may be paid, if thought advisable, by allowing its officers to sell bills of exchange, to private individuals, at a moderate premium. Not being a corporate body, having no stockholders, debtors. and property. and hut tvrv officers, it would not be obnoxious to the constitutional objections whieh are urged against the present bank; and having no means to operate on the hopes, Sears. or interests, of large masses of the community, it would be shorn of the influence which makes that bank formidable.' In this message president Jackson, after again adverting to the imaginary dangers of a bank of the United States, recurs to his favorite project, and inquires, 'whether it be not possible to secure the advantages afforded by the present bank, through the agency of a bank of the United States, so modified in its principles and structure as to obviate constitutional and other objections.' And to dispel all doubts of the timid, and to confirm the wavering, he declares, that it is thought practicable to organize such a bankl, wilh the necessary officers, as a branch of the treasury department. As a branch of the treasury department! The very scheme now under consideration. And, to defray the expenses of such an anomalous institution, he suggests, that the officers of the treasury department VOL. II. 40 313 SPEECHES OF HENRY CLAY. may turn bankers and brokers, and sell bills of exchange to private individuals at a moderate premium! In his annual message of the year 1831, upon this subject, he was brief and somewhat covered in his expressions. But the fixed purpose which he entertained is sufficiently disclosed to the atten- tive reader. He announces, that' entertaining the opinions hereto- fore expressed in relation to the bank of the United States, as at present org-anized, I felt it my duty, in my former messages, frankly to disclose themn, in order that the attention of the legislature and the people should be seasonably directed to that important subject, and that it might be considered, and finally disposed of, in a manner best calculated to promote the ends of the constitution, and subserve the public interests.' What were the opinions ' heretofore' ex- pressed. we have clearly seen. They were adverse to the bank of the United States, as at present orgIanized, that is to say, an organ- ization with any independent corporate government; and in favor of a national bank which should be so constituted as to be subject to exclusive executive control. At the session of 1831-2, the question of the recharter of the bank of the United States came up; and although the attention of congress and the country had been repeatedly and deliberately before invited to the consideration of it by president Jackson himself, the agitation of it was now declared by him and his parti- sans to be precipitate and premature. Nevertheless, the country and congress conscious of the value of a safe and sound uniform currency, conscious that such a currency had been eminently supplied by the bank of the United States, and unmoved by all the outcry raised against that admirable institution, the reeharter commanded large majorities in both houses of congress. Fatally for the interests of this country, the stern self-will of general Jacksonl prompted him to risk every thing upon its overthrow. On the tenth of July, 1832, the bill was returned with his veto; from which the following extract is submitted to the attentive consideration of the senate. ' A bank of the United States is, in many respects, convenient for the government and useful to the people. Entertaining this opinion, and deeply impressed with the belief that some of the powers and privileges possessed by the existing bank are unau- thorized by the constitution, subversive of the rights of the states, and dangerous to the liberties of the people, I felt it my duty, at an early period of my administration, to call the attention of congress to the practicability of organizing an institution, combining all its advantages, and obviating these objections. I sincerely regret that, in the act before me, I can perceive none of those modifications of the bank charter which are necessary, in my opinion, to make it compatible with justice, with sound policy, or with the constitution of our country. ' That a bank of the United States, competent to all the duties which may be required by government, might be so organized as not to infringe upon our own dele- gated powers, or the reserved rights of the states, I do not entertain a doubt. Had the executive been called upon to furnish the pro'ert of sich an institution, the duty wouldl have been cheerfully performed. In the absence of such a call, it is obviously proper that he should confine himself to pointing out those prominent features in the act presented, which, in his opinion, make it incompatible with the constitution and sound policy.' 314 ON THE SUB-TREASURY SCIEME. President Jackson admits, in the citation which has just been made, that a bank of the United States is, in many respects, conve- nient for the government; and reminds congress that he had, at an early period of his administration, called its attention to the practi- cability of so organizing such an institution as to secure all its advantages, without the defects of the existing bank. It is perfectly manifest, that he alludes to his previous recommendations of a government, a treasury bank. In the same message he tells congress, that if he had been called upon to furnish the project of such an institution, the duty would have been cheerfully performed. Thus it appears, that he had not only settled in his mind the general principle, but had adjusted the details of a government bank, lo be subjected to executive control; and congress is even chided for not calling upon him to present them. The bill now under consideration, beyond all controversy, is the very project which he had in view, and is to consummate the work which he began. I think, Mr. President, that you must now concur with me in considering the first propo- sition as fully maintained. I pass to the second and third, wvhich, on account of their intimate connection, I will consider together. Second, that with the view of establishing a government bank, it was the settled aim and intention of the late administration, to overthrow the whole banking system of the United States, as existing in the United States when that administration came into power, beginning with the bank of the United States, and ending with the state banks. Third, that the attack was first confined, from considerations of policy, to the bank of the United States; but that, after its over- throw was accomplished, it was then directed, and has since been continued, against the state banks. We are not bound to inquire into the motives of president Jack- son for desiring to subvert the established monetary and financial system, which he found in operation; and yet some examination into those which probably influenced his mind, is not without utility. These are to be found in his peculiar constitution and character. His egotism and vanity, prompted him to subject every thing to his will; to change, to remould, and retouch every thing. Hence the proscription which characterized his administration, the universal expulsion from office, at home and abroad, of all who were not devoted to him, and the attempt to render the executive department of government, to use a favorite expression of his own, a complete 'unit.' Hence his seizure of the public deposits, in the bank of the United States, and his desire to unite the purse with the sword. Hence his attack upon all the systems of policy which he found in practical operation, on that of internal improve- ments, and on that of the protection of national industry. He was animated by the same sort of ambition which induced the master mind of the age, Napoleon Bonaparte, to impress his name upon 315 SPEECHES OF HENRY CLAY. every thing in France. When I was in Paris, the sculptors were busily engaged chiselling out the famous N., so odious to the Bourbon line, which had been conspicuously carved on the palace of the Tuilleries, and on other public edifices and monuments, in the proud capital of France. When, Mr. President, shall we see eflaced, all traces of the ravages committed by the administration of Andrew Jackson! Society has been uprooted, virtue punished, vice rewarded, and talents and intellectual endowments despised; brutality, vulgarism, and loco focoism upheld, cherished, and countenanced. Ages will roll around before the moral and polit- ical ravages which have been committed, will, 1 fear, cease to be discernible. General Jackson's ambition was to make his adminis- tration an era in the history of the American government, and he has accomplished that object of his ambition; but I trust that it wvill be an era to be shunned as sad and lamentable, and not followed and imitated as supplying sound maxims and principles of administration. I have heard his hostility to banks ascribed to some collision which he had with one of them, during the late war, at the city of New Orleans; and it is possible that may have had some influence upon his mind. The immediate cause, more probably, was the refusal of that perverse and unaccommodating. gentleman, Nick Biddle, to turn out of the office of president of the New Hampshire branch of the bank of the United States, at the instance of his excellency Isaac Hill, in the summer of 1829, that giant-like person, Jeremiah Mason - giant in body, and giant in mind. War and strife, endless war and strife, personal or national, foreign or domestic, were the aliment of the late president's existence. War against the bank, war against France, and strife and contention with a countless number of individuals. The wars with Black Hawk and the Seminoles were scarcely a luncheon for his voracious appetite. And he made his exit from public life, denouncing war 'and vengeance against Mexico and the state banks. My acquaintance with that extraordinary man commenced in this city, in the fall of 1815 or 1816. It was short, but highly respectful, and mutually cordial. I beheld in him the gallant and successful general, who, by the glorious victory of New Orleans, had honorably closed the second war of our independence, and I paid him the homage due to that eminent service. A few years after, it became my painful duty to animadvert, in the house of representatives, with the independence which belongs to the repre- sentative character, upon some of his proceedings, in the conduct of the Seminole war, which I thought illegal, and contrary to the constitution and the law of nations. A non-intercourse between us ensued, which continued until the fall of 1824, when, he being a inember of the senate, it was sought to bring about all accom- modation between us, by the principal part of the delegation 316 ON THIE SUB-TREASURY SCHEE. 17E. from his own state. For that purpose, we were invited to dine with them, at Claxton's boarding-house, on Capitol hill, where my venerable friend from Tennessee, (Mr. White,) and his colleague on the Spanish commission, were both present. I retired early from dinner, and was followed to the door by general Jackson and the present minister of the United States at the court of Madrid. They pressed me earnestly to take a seat with them in their carriage. My faithful servant and friend, Charles, was standing at the door, waiting for me, with my own. I yielded to their urgent politeness, directed Charles to follow with my carriage, and they sat me down at my own door. We afterwards frequently met, with mutual respect and cordiality; dined several times together, and reciprocated the hospitality of our respective quarters. This friendly intercourse continued, until the election, in the house of representatives, of a president of the United States, came on, in February, 1825. I gave the vote which, in the contingency that happened, I told my col- league, (Mr. Crittenden,) who sits before me, prior to my departure from Kentucky, in November, 1824, and told others, that I should give. All intercourse ceased between general Jackson and myself. We have never since, except once accidentally, exchanged saluta- tions, nor met, except on occasions when we were performing the last offices towards deceased members of congress, or other officers of government. Immediately after my vote, a rancorous war was commenced against me, and all the barking dogs let loose upon me. I shall not trace it during its ten years' bitter continuance. But I thank my God that I stand here, firm and erect, unbent, unbroken, unsubdued, unawed, ready to denounce the mischievous measures of his administration, and ready to denounce this, its legitimate offspring, the most pernicious of them all. His administration consisted of a succession of astounding measures, which fell on the public ear like repeated bursts of loud and appalling thunder. Before the reverberations of one peal had ceased, another and another came, louder and louder, and more terrifying. Or rather, it was like a volcanic mountain, emitting frightful eruptions of burning lava. Before one was cold and crusted, before the voices of the inhabitants of buried villages and cities were hushed in eternal silence, another, more desolating, was vomited forth, extending wider and wider the circle of death and destruction. Mr. President, this is no unnecessary digression. The personal character of such a chief as I have been describing, his passions, his propensities, the character of his mind, should be all thoroughly studied, to comprehend clearly his measures and his administration. But I will now proceed to more direct and strict proofs of my second and third propositions. That he was resolved to break down the bank of the United States, is proved by the same citations from his messages which I have made to exhibit his purpose to 317 SPEECHES OF HENRY CLAY. establish a treasury bank, is proved by his veto message, and by the fact that he did destroy it. The war against all other banks was not originally announced, because he wished the state banks to be auxiliaries in overthrowing the bank of the United States, and because such an annunciation would have been too rash and shocking, upon the people of the United States, for even his tremendous influence. It was necessary to proceed in the- work with caution. and to begin with that institution against which could be embodied the greatest amount of prejudice. The refusal to recharter the bank of the United States was followed by a deter- mination to remove from its custody the public money of the United States. That determination was first whispered in this place, denied, again intimated, and, finally, in September, 1833, executed. The agitation of the American public wvhich ensued, the warm and animated discussions, in the country and in congress, to which that unconstitutional measure gave rise, are all fresh in our recollection. It was necessary to quiet the public mind, and to reconcile the people to what had been done, before president Jackson seriously entered upon his new career of hostility to the state banks. At the commencement of the session of congress, in 18:34, he imagined a sufficient calm had been produced, and, in his annual message of that year, thle war upon the state banks wvas opened. In that message he says: 'It seems due to the safety of the public funds remaining in that bank, and to the honor of the American people, that measures be taken to separate the government entirely, from an institution so mischievous to the public prosperity, and so regardless of the constitution and laws. By transferring the public deposits, by appointing other pension agents, as far as it had the power, by ordering the discontinuance of the receipt of bank checks, in payment of the public dues, after the first day of January next. the exec utive has exerted all its lawful authority, to sever the connection between the government and this faithless corporation.' In this quotation, it will be seen that the first germ is contained of that separation and divorce of the government from banks, which has recently made such a conspicuous figure. It relates, it is true, to the late bank of the United States, and he speaks of separating and severing the connection between the government and that institution. But the idea, once developed, was easily susceptible of application to all banking institutions. In the mes- sage of the succeeding year, his meditated attack upon the state banks, is more distinctly disclosed. Speaking of a sound currency, he says: 'In considering the means of obtaining so important an end, (that is, a sound cur- rency,) we must set aside all calculations of temporary convenience, and be influenced by those only that are in harmony with the true character and permanent interests of the republic. We must recur to first principles, and see what it is that has pre- vented the legislation of congress and the states, on the subject of currency, from satisfying the public expectation, and realizing results corresponding to those which have attended the action of our system, when truly consistent with the great principle of equality upon which it rests, and with that spirit of forbearance and mutual con- 318 ON THE SUB-TREASURY SCHEME. 319 cession and generous patriotism, which was originally, and must ever continue to be, the vital element of our union. I On this subject, I am sure that I cannot be mistaken, in ascribing our want of success to the undlue countenance which has been afforded to the rpirit of monopoly. All the serious dangers which our system has yet encountered, may he traced to the resort to implied powers, and the use of corporations clothed with privileges, the effect of which is to advance the interests of the few at the expense of the many. We have felt but one class of these dangers, exhibited in the contest waged by the bank of the United States, against the government, for the last four years. Happily they have been obviated for the present, by the indignant resistance of the people; buat we should recollect that the principle whence they sprang is an ever-active one, which will not fail to renew its efforts in the same and in other forms, so long as there is a hope of success, founded either on the inattention of the people, or the treachery of their representatives, to the subtle progress of its influence. ' We are now to see whether, in the present favorable condition of the country, we cannot take an effectual stand against this spirit of monopoly, and practically prove, in respect to the currency, as well as other important interests, that there is no necessity for so extensive a resort to it as that which has been heretofore practiced.' ' It has been seen, that without the agency of a great moneyed monop- oly, the revenue can be collected, and conveniently and safely applied to all the purposes of the public expenditure. It is also ascertained that, instead of being necessarily made to promote the evils of an unchecked paper system, the manage- mrent of the revenue can be made auxiliary to the reform which the legislatures of several of the states have already commenced, in regard to the suppression of small bills; and which has only to be fostered by proper regulations on the part of covgress, to secure a practical return, to the extent required for the security of the currency, to the constitutional medium.' As in the instance of the attack upon the bank of the United States, the approach to the state banks is slow, cautious, and insidi- otls. Ile reminds congress and the country that all calculations of temporary convenience must be set aside; that we must recur to first principles ; and that we must see what it is that has prevented the legislation of congress and tIe states on the subject of the currency fromi satisfying public expectation. lie declares his conviction that the want of success has proceeded from the undue countenance which has been afforded to the spirit of monopoly. All the serious dangers which our system has yet encountered, may be traced to the resort to implied powers, and to the use of corpora- tions. We have felt, he says, but one class of these dangers in the contest with the bank of the United States, and he clearly intimates that the other class is the state banks. Wae are now to see, he proceeds, whether in the present favorable condition of the country, we cannot take an effectual stand against this spirit of monopoly. Reverting to his favorite scheme of a government banl, he says it is ascertained, that, instead of being made necessary to promote the evils of an unchecked paper system, the nmanagement of the revenue can be made auxiliary to the reform which he is desirous to intro- (Itce. The designs of president Jackson against the state banks are more fully developed and enlarged upon in his annual message of 1S36, from which I beg leave to quote the following passages. 'I beg leave to call your attention to another subject, intimately associated with the preceding one -the currency of the country. 320 . SPEECHES OF HENRY CLAY. ' It is apparent, from the whole context of the constitution, as well as the history of the times that gave birth to it, that it was the purpose of the convention to estab- lish a currency consisting of the prefious metals. These, from their peculiar properties, which rendered them the standard of value in all other countries, were adopted in this, as well to establish its commercial standard, in reference to foreign countries, by a permanent rule, as to exclude the use of a mutable medium of exchange, such as of certain agricultural commodities, recognised by the statutes of some states, as a tender for debts, or the still more pernicious expedient of a paper currency.' I Variableness must ever be the characteristic of a currency of which the precious metals are not the chief ingredient, or which can be expanded or contracted, without regard to the principles that regulate the value of those metals as a standard in the general trade of the world. With us, bank issues constitute such a currency, and must ever do so, until they are made dependent on those just proportions of gold and silver, as a circulating medium, which experience has proved to be necessary, not only in this, but in all other commercial countries. Where those proportions are not infused into the circulation, and do not control it, it is manifest that prices must vary according to the tide of bank issues, and the value and stability of property must stand exposed to all the uncertainty which attends the administration of insti- tutions that are constantly liable to the temptation of an interest distinct from that of the community in which they are established.' ' But although various dangers to our republican institutions have been obviated by the failure of that bank to extort from the government a renewal of its charter, it is obvious that little has been accomplished, except a salutary change of public opinion towards restoring to the country the sound currency provided for in the constitution. In the acts of several of the states prohibiting the circulation of small notes, and the auxiliary enactments of congress at the last session, forbidding their reception or payment on public account, the true policy of the country has been advanced, and a larger portion of the precious metals infused into our circulat- ing medium. These measures will probably be followed up in due time, by the enactment of state laws. banishing from circulation bank notes of still higher denominations; and the object may be materially promoted by further acts of Con- gress, forbidding the employment, as fiscal agents, of such banks as issue notes of low denominations, and throw impediments in the way of the circulation of gold and silver. ' The effects of an extension of bank rredits and over issues of bank paper have been strikingly illustrated in the sales of the public lands. From the retLrns made by the various registers and receivers in the early part of last summer, it was perceived that the receipts arising from the sales of public landswere increasing to an unprece- dented amount. In effect, however, these receipts amount to nothing more than -credits in banks. The banks lent out their notes to speculators: they were paid to the receivers, and immediately returned to the banks, to be lent out again and again, being mere instruments to transfer to speculators the most valuable public land, and pay the government by a credit on the books of the banks. Those credits on the books of some of the western banks, usually called deposits, were already greatly beyond their immediate means of payment, and were rapidly increasing. Indeed, each speculation furnished means for another; for no sooner had one individual or company paid in the notes, than they were immediately lent to another for a like purpose; and the banks were extending their business and their issues so largely as to alarm considerate men, and render it doubtful whether these bank rredit, if petmitted to ezruinpulate. would ultimately be of the least value to the government. The spirit of expansion and speculation was not confined to the deposit banks. but pervaded the whole multitude of banks throughout the union, and was giving rise to new institu- tions to aggravate the evil. ' The safiety of the public funds, and the interest of the people generally, required that these operations should be checked; and it became the duty of every branch of the general and state governments, to adopt all legitimate and proper means to produce that salutary effect. Under this view of my duty, I directed the issuing of the order, which will be laid before you by the secretary of the treasury, requiring payment of the public lands sold, to be made in specie, with an exception until the fifto enth of the present month in favor of actual settlers. This measure has produced many salutary consequences. It checked the career of the western banks. and gave them additional strength in anticipation of the pressure which has since pervaded our eastern as well as the European commercial cities. By preventing the expansion of the credit system, it measurably cut off the means of speculation, and retarded its ON THE SUB-TREASURY SCHEME. progress in monopolizing the most valuable of the public lands. It has tended to save the new states from a non-resident proprietorship; one of the greatest obstacles to the advancement of a new country, and the prosperity of an old one. It has tended to keep open the public lands for entry by emigrants at government pifeies. instead of their being compelled to purchase of speculators at double or treble price.. And it is conveying into the interior, large sums in silver and gold, there to enter permanently into the currency of the country, and place it on a firmer foundation. It is confidently believed that the country will find, in the motives which induc d that order, and the happy consequences which have ensued, much to commend, and nothing to condemn.' It is seen that he again calls the attention of congress to the currency of the country, alleges that it was apparent frorn the whole context of the constitution, as wvell as the history of the times that gave birth to it, that it \xas the purpose of the ccs ven- tion to establish a currency consisting of the precious 2vetals; imputes variableness and a liability to inordinate contraction and expansion to the existing paper system, and denounces batik issues, as being an uncertain standard. He felicitates himself upon ihe dangers which have been obviated by the overtlirowv of the bankll of the United States, but declares that little has been yet done, except to produce a salutary change of public opinion towards restoring to the country, the sound currency provided for in the constitution. I will here say, in passing, that all this outcry about the precious metals, gold, and the constitutional currency, has been put forth to delude the people, and to use the precious metals as anI instrument to break down the banking institutions of the stares, and lo thus pave the way for the ultimate establishment of a great government bank. In the present advanced state of civilizatien, in the present condition of the commerce of the world, and in 11he actual relations of trade and intercourse between the dif'rviit nations of the world, it is perfectly chimerical to suppose that Ille currency of the United Stales should consist exclusively, or prin- cipally, of the precious metals. In the quotations which I have made from the last annual message of general Jackson, he speaks of the extension of bank credits, and the over-issues of bank paper, in the operations upon the sales of public lands. In his message of only the preceding year, the vast amount of those sales had been dwelt upon -1'ilb peculiar complaisance, as illustrating the general prosperity of the country, and as proof of the wisdom of his administration. But now that which had been announced as a blessing, is deprecated as a calamity. Now, his object being to assail the banking itstilu- tions of the states, and to justify that fatal treasury order, which I shall hereafter have occasion to notice, he expresses his apprehen- sion of the danger to which we are exposed of losing the public domain, and getting nothing for it but bank credits. He describes, minutely, the circular process by which the notes of the banks passed out of those institutions, to be employed in the purchase of the public lands, and returned again to them in the form of credits VOL. II. 41 321 SPEECHVS OF HENRY CLAY. to the government. He forgets that Mr. Secretary Taney, to recon- cile the people of the United States to the daring measure of removing the public deposits, had stimulated the banks to the exercise of great liberality in the grant of loans. He informs us, in that message, that the safety of the public funds, and the inter- ests of the people generally, required that these copious issues of the banks should be checked, and that the conversion of the public lands into mere bank credits should be arrested. And his meas- ure to accomplish these objects, was that famous treasury order, already adverted to. Let us pause here for a moment, and contem- plate the circumstances under which it was issued. The principle of the order had been proposed and discussed in congress. But one senator, as far as I know, in this branch of the legislature, and not a solitary member, within my knowledge, in the house of representatives, was in favor of it. And yet, in about a week after the adjournment of congress, the principle which met with no countenance from the legislative authority, was embodied in the form of a treasury edict, and promulgated under the executive authority, to the astonishment of the people of the United States! If we possessed no other evidence whatever of the hostility of president Jackson to the state banks of the United States, that order would supply conclusive proof. Bank notes, bank issues, bank credits, were distrusted and denounced by him. It was proclaimed to the people, that they were unworthy of confidence. The government could no longer trust in their security. And at a moment when the banking operations were extended, and stretched to their utmost tension; when they were almost all tottering and ready to fall, for the want of that metallic basis on which thev all rested, the executive announces its distrust, issues the treasury order, and enters the market for specie, by a demand of an extraordinary amount to supply the means of purchasing the public lands. If the sales had continued in the same ratio they had been made during the previous year, that is, at about the rate of twenty-four millions per annum, this unprecedented demand created by govern- ment for specie, must have exhausted the vaults of most of the banks, and produced much sooner the catastrophe which occurred in May last. And, what is most extraordinary, this wanton demand for specie upon all the banks of the commercial capitals, and in the busy and thickly peopled portions of the country, was that it might be transported into the wilderness, and, after having been used in the purchase of public lands, deposited to the credit of the government in the books of western banks, in some of which, according to the message, they were already credits to the government 'greatly beyond their immediate means of payment.' Government, therefore, did not itself receive, or rather, did not retain, the very specie which it professed to demand as the only medium worthy of the public lands. The specie, which was so ON THE SU B-TREASURY SCHEME. uselessly exacted, was transferred from one set of banks, to the derangement of the commerce and business of the country, and placed in the vaults of another set of banks in the interior, forming only those bank credits to the government upon which president Jackson placed so slight a value. Finally, when general Jackson was about to retire from the cares of goverrtinent, he favored his countrymen with a farewell address. The solemnity of the occasion gives to any opinions which he has expressed in that document a claim to peculiar attention. It will be seen on perusing it, that he denounces, more emphatically than in any of his previous addresses, the bank paper of the country, corporations, and what he chooses to denominate the spirit of monopoly. The senate will indulge me in calling its attention to certain parts of that address, in the following extracts. ' The constitution of the United States unquestionably intended to secure to the geople, a circulating medium of gold and silver. But the establishment of a national ank by congress, with the privilege of issuing paper money, receivable in payment of the public dues, and the unfortunate cause of legislation in the several states upon the same subject, drove from general circulation the constitutional currency. and substituted one of paper in its place. 'The mischief springs from the power which the moneyed interest derives from a paper currency, which they are able to control; from the multitude of corporations, with exclusive privileges, which they have succeeded in obtaining in the different states, and which are employed altogether for their benefit; and unless you become more watchful in your states, and check this spirit of monopoly, and thirst for exclu. sive privileges, you will, in the end, find that the most important powers of govern- ment have been given or bartered away, and the control over your dearest interests has passed into the hands of these corporations.' 'But it will require steady and persevering exertions on your part to rid yourselves of the iniquities and mischiefs of the paper system, and to check the spirit of monopoly and other abuses which have sprung up with it, and of which it is the main support. So many interests are united to resist all reform on this subject, that you must not hope that the conflict will be a short one, nor success easy. My humble efforts have not been spared, during my administration of the government, to restore the constitutional currency of gold and silver: and something, I trust, has been done towards the accomplishment of this most desirable object. But enough yet remains, to require all your energy and perseverance. The power, however, is in your hands, and the remedy must, and will be applied, if you determine upon it.' The mask is now thrown off, and he boldly says that the consti- tution of the United States Unquestionably intended to secure to the people a circulating medium of gold and silver. They have not enjoyed, he says, that benefit, because of the establishment of a national bank, and the unfortunate course of legislation in the several states. He does not limit his condemnation of the past policy of his country to the federal government, of which he had just ceased to be the chief, but he extends it to the states also, as if they were incompetent to judge of the interests of their respec- tive citizens. He tells us that the mischief springs from the poweer which the moneyed interest derives from a paper currency, which they are able to control, and the multitude of corporations; and lie stimulates the people to become more watchful in their several states, to check this spirit of monopoly. To invigorate their 323 SPEECHES OF HENRY CLAY. fortitude, he tells the people that it will require steady and perse. vering exertions on their part, to rid themselves of the iniquities and mischiefs of the paper system, and to check the spirit of monopoly. They must not hope that the conflict will be a short one, nor success easy. His humble efforts have not been spared during his administration, to restore the constitutional currency of gold and silver; and although he has been able to do something towards the accomplishment of that object, enoug,;h yet remains to require all the energy and perseverance of the people. Such, Mr. President, are the proofs and the argument on which I rely to establish the second and third propositions which I have been considering. Are they not successfully maintained Is it possible that any thing could be more conclusive on such a subject I pass to the consideration of the fourth proposition. Fourth, that the present administration, by acknowledgments emanating from the highest and most authentic source, has snc- ceeded to the principles, plans, and policy, of the preceding administration, and stands solemnly pledged to complete and perfect them. The proofs on this subject are brief; but they are clear, direct, and plenary. It is impossible for any unbiased mind to doubt for a moment about them. You, sir, will be surprised, when I shall array them before you, at their irresistible force. The first that I shall offer is an extract from Mr. Van Buren's letter of acceptance of the nomination of the Baltimore convention, dated May 23d, 1835. In that letter he says: I I content myself, on this occasion, with saying, that I consider myself the hon- ored instrument, selected by the friends of the present administration. to carry out its principles and policy; and that, as well from inclination as from duty. I shall, if honored with the choice of the American people, endeavor generally to follow in the footsteps of president Jackson; happy if I shall be able to perfect the work which he has so gloriously begun.' Mr. Van Buren announces that he was the honored instrument selected by the friends of the present administration, to carry out its principles and policy. The honored instrument! That word, according to the most approved definition, means tool. He was, then, the honored tool-to do what to promote the honor, and advance the welfare of the people of the United States, and to add to the glory of his country No, no; his country was not in his thoughts. Party, party, filled the place in his bosom which country should have occupied. He was the honored tool to carry out the lprinciples and policy of general Jackson's administration; and, if elected, he should, as well from inclination as from duty, endeavor. generally, to tread in the footsteps of general Jackson; happy if he should be able to perfect the work which he had so gloriously begun. Duty to whom to the country, to the whole people of the 324 ON THE SUB-TREASURY SCHEME. United States No such thing; but duty to the friends of the then administration; and that duty required him to tread in the footstcps of his illustrious predecessor, anld to perfect the work which he had begun! Now, the senate vill bear in mind that the most distinguishing features of general Jackson's administration related to the currency; that he had denounced the banking insti- tutions of the country: that he had overthrown the bank of the United States; that he had declared, when that object was accom- plished, only one half the work was completed; that he then commenced war against the state banks, in order to finish the other half; that he constantly persevered in, and never abandoned, his favorite project of a great government treasury bank; and that he retired from the office of chief magistrate, pouring out, in his farewell address, anathemrias against paper money, corporations, and the spirit of monopoly. When all these things are recollected, it is impossible not to comprehend clearly what Mr. Van Buren means, by carrying out the principles and policy of the late administration. No one can mistake that those principles and that policy require him to break down the local institutions of the states, and to discredit and destroy the paper medium which they issue. No one can be at a loss to understand, that, in following in the footsteps of president Jackson, and in perfecting the wvork which hie begun, Mr. Van Buren means to continue attacking, systematically, the banks of the states, and to erect on their ruins, that great government bank, begun by his predecessor, and which he is the honored instrument selected to complete. The next proof which I shall offer is supplied by Mr. Van Buren's inaugural address, from which I request permission of the senate to read the following extract. ' In receiving from the people the sacred trust twice confided to my illustrious predecessor, and which he has discharged so faithfully and so well, I know that I cannot expect to perform the arduous task with equal ability and success. But, united as I have been in his counsels, a daily witness of his exclusive and unsurpassed devotion to his country's welfare, agreeing uwith him in sentiments which his countrymen have warmly supported, and permitted to partake largely of his confidence, I may hope that somewhat of the same cheering approbation will be found to attend upon my path.' Here we find Mr Van Buren distinctly avowing, what the American people well knew before, that he had been united in the counsels of general Jackson; that he had agreed with him in sen- timents, and that he had partaken largely of his confidence. This intimacy and confidential intercourse could not have existed without the concurrence of Mr. Van Buren in all those leading and prominent measures of his friend, which related to the estab- lishment of a government bank, the overthrow of the bank of the United States, the attack upon the state institutions, and the denun- ciation of the paper currency, the spirit of monopoly, and corpora- tions. Is it credible to believe that general Jackson should have 325 SPEECHES OF HENRY CLAY. aimed at the accomplishment of all those objects, and entertained all these sentiments, without Mr. Van Buren's participation I proceed to another point of powerful evidence, in the conduct of Mr. Van Buren, in respect to the famous treasury order. That order had been promulgated, originally, in defiance of the opinion of congress, had been continued in operation, in defiance of the wishes and will of the people, and had been repealed by a bill passed at the last ordinary session of congress, by overwhelming majorities. The fate of that bill is well known. Instead of being returned to the house in which it originated, according to the requirement of the constitution, it was sent to one of the pigeon- holes of the department of state, to be filed away with an opinion of a convenient attorney-general, always ready to prepare one in support of executive encroachment. On the fifth of March last, not a doubt was entertained, as far as my knowledge or belief extends, that Mr. Van Buren would rescind the obnoxious order. I appeal to the senator from Missouri, who sits near me, (Mr. Linn,) to the senator from Mississippi, who sits furthest from me, (Mr. Walker,) to the senator from Alabama, (Mr. King,) and to the whole of the administration senators, if such was not the expecta- tion of all of them. Was there ever an occasion in which a new administration had so fine an opportunity to signalize its corn- mencement by an act of grace and wisdom, demanded by the best interests and most anxious wishes of the people But Mr. Van Buren did not think proper to embrace it. He had shared too largely in the confidence of his predecessor, agreed too fully with him in sentiments, had been too much united with him in his counsels, to rescind an order which constituted so essential a part of the system which had been deliberately adopted to overthrow the state banks. Another course pursued by the administration, after the catas- trophe of the suspension of specie payments by the banks, demonstrates the hostile purposes towards them of the present administration. When a similar event had occurred during the administration of Mr. Madison, did he discredit and discounte- nance the issues of the banks, by refusing to receive them in payment of the public dues Did the state governments, upon the former or the late occasion, refuse to receive them in payment of the dues to them, respectively And if irredeemable bank notes are good enough for state governments and the people, are they not good enough for the federal government of the same people By exacting specie, in all payments to the general government, that government presented itself in the market as a powerful and formidable competitor with the banks, demanding specie at a moment when the banks were making unexampled struggles to strengthen themselves, and prepare for the resumption of specie payments. The extent of this government demand for 320 ON THE SUB-TREASURY SCHEME. specie does not admit of exact ascertainment; but when we reflect that the annual expenditures of the government were at the rate, including the post-office department, of about thirty-ihree millions of dollars, and That its income, made up either of taxes or loans, must be an equal sum, making together an aggregate of sixty-six millions, it will be seen that the amount of specie required for the use of government must be immensely large. It cannot be precisely determined, but would not be less, probably, than fifteen or twenty millions of dollars per annum. Now, how is it possible for the banks, coming into the specie market in competition with all the vast power and influence of the govern- ment, to provide themselves with specie, in a reasonable time to resume specie payments That competition would have been avoided, if, upon the stoppage of the banks, the notes of those of whose solidity there was no doubt, had been continued to be received in payment of the public dues, as was done in Mr. Madison's administration. And why, Mr. President, should they not have been Why should not this government receive the same description of medium which is found to answer all the purposes of the several state governments Why should they have resorted to the expedient of issuing an inferior paper medium, in the form of treasury notes, and refusing to receive the better notes of safe and solid banks Do not misunderstand me, Mr. President. No man is more averse than I am, to a permanent, inconvertible paper medium. It would have been as a tempo- rary measure only, that I should have thought it expedient to receive the notes of good local banks. If, along with that measure, the treasury order had been repealed, and other measures adopted to encourage and coerce the resumption of specie pay- ments, we should have been much nigher that desirable event, than, I fear, we now are. Indeed, I do not see when it is possible for the banks to resume specie payments, as long as the govern- ment is in the field, making war upon them, and in the market demanding specie. Another conclusive evidence of the hostility to the state banks, on the part of Mr. Van Buren, is to be found in that extraordinary recommendation of a bankrupt law, contained in his message at the extra session. According to all the principles of any bankrupt system with which I am acquainted, the banks, bv the stoppage of specie payment, had rendered themselves liable to its operation. If the recommended law had been passed, commissions of bank- ruptcy could have been immediately sued out against all the suspended banks, their assets seized, and the administration of them transferred from the several corporations to which it is now intrusted, to commissioners appointed by the president himself. Thus, by one blow, would the whole of the state banks have been completely prostrated, and the way cleared for the introduction of 3927 SPEECHES OF HENRY CLAY. the favorite treasury bank; and is it not in the same spirit of unfriendliness to those banks, and with the same view of removing all obstacles to the establishment of a government bank, that the bill was presented to the senate a few days ago by the senator from Tennessee, (Mr. Grundy,) against the circulation of the notes of the old bank of the United States At a time when there is too much want of confidence, and when every thing that can be done, should be done, to revive and strengthen it, wve are called upon to pass a law denouncing the heaviest penalty and ignomin- ious punishment against all who shall reissue the notes of the old bank of the United States, of which we are told that about seven millions of dollars are in circulation; and they constitute the best portion of the paper medium of the country; the only portion of it which has a credit every where, and which serves the purpose of a general circulation; the only portion with which a man can travel from one end of the continCnt to the other; and I do not doubt that the senator who has fulminated these severe pains and penalties against that best part of our paper medium, provides himself with a sufficient amount of it, whenever he leaves Nash- ville, to take him to Washington. [Here Mr. Grundy rose and remarked, no, sir; I always travel on specie.] Ah! continued Mr. Clay, my old friend is always specieous. I am quite sure that members from a distance in the interior gene- rally find it indispensable to supply themselves, on commencing their journey, with an adequate amount of these identical notes to defray its expenses. Why, sir, will any man in his senses deny, that these notes are far better than those which have been issued by that government banker, Mr. Levi Woodbury, aided though he be by the chancellor of the exchequer, (I beg his pardon, I mean the ex-chancellor,) the senator from New York, (Mr. Wright ) I am not going to stop here to inquire into the strict legality of the reissue of these notes; that question, together with the power of the government to pass the proposed bill, will be taken up when it is considered. I am looking into the motive of such a measure. Nobody doubts the perfect safety of the notes; no one can believe that thev will not be fairly and fully paid. What, then, is the design of the bill It is to assail the only sure general medium which the people possess. It is because it may come in competition with treasury notes or other govern- ment paper. Sir. if the bill had not been proposed by my old friend from Tennessee, I would say its author better deserved a penitentiary punishment than those against whom it is directed. I remember to have heard of an illustrious individual, now in retirement, having, on some occasion, burst out into the most patriotic indignation, because of a waggish trick played off upon him, by putting a note of the late bank of the United States into his silk purse with his gold. 328 ON THE SUB-TP.EASURY SCHEME. But it is unnecessary to dwell longer on the innumerable proofss of the hostility against the state banks, and the deliberate ptirpo-e of those in power to overthrow them. We hear and SCt' da;!y, throughout the country, among their partisans and presses, (dentIin- ciations against banks, corporations, rag barons, the spirit of' fionop)- oly, and so forth; and the howl for gold, hard monev, and tlhe constitutional currency; and no one can listen to the speeches of honorable members, friends of the administration, in this house and the other, without being impressed with a perfect conviction that the destruction of the state banks is meditated. I have fulfilled my promise, Mr. President, to sustain the first four propositions with which I sat out. I now proceed to the fifth proposition. Fifth, that the bill under consideration is intended to execute Mr. Van Buren's pledge, to complete and perfect the principles, plans, and policy, of the past administration, by establishing, upon the ruins of the late bank of the United States and the state banks, a government bank, to be managed and controlled by the treasury department, acting under the commands of the president of the United States. The first impression made by the perusal of the bill is the prodigal and boundless discretion which it grants to the secretary of tlhe treasury, irreconcilable with the genius of our free institllionls, and contrary to the former cautious practice of the government. As originally reported, he was authorized by the bill to allow any number of clerks he thought proper to the various receivers-general, and to fix their salaries. It wvill be borne in mind that this is tIme mere commencement of a system; and it cannot be doubled that, if put into operation, the number of receivers-general, and other depositaries of the public money, would be indefinitely multiplied. He is allowed to appoint as many examiners of the public money, and to fix their salaries, as he pleases; he is allowed to erect at pleasure costly buildings; there is no estimate for any thing; and all who are conversant weith the operations of the executive branch of the government knowv the value and importance of previous estimates. There is no other check upon wasteful expenditure hbt previous estimates; and that was a point always partieularly insisted upon by Mr. Jefferson. The senate wvill recollect, that, a few days ago, when the salary of the receiver-general at New York wxias fixed, the chairman of the committee of finance rose in his place and stated, that it was suggested by the secretary of the treasury, that it should be placed at three thousand dollars; and the blank wvas accordingly so filled. There was no statement of the nature or extent of the duties to be performed, of the time that he would be occupied, of the extent of his responsibility, or the expense of living at the several points where they were lo be located; nothing but the suegsestion of the secretary of the treasury, VOL. II. 42 329 SPEECHES OF HENRY CLAY. and that was deemed all-sufficient by a majority. There is no limit upon the appropriation which is made to carry into effect the bill, contrary to all former usage, which invariably prescribed a sum not to be transcended. A most remarkable feature in the bill is that to which I have already called the attention of the senate, and of which no satisfac- tory explanation has been given. It is that which proceeds upon the idea, that the treasury is a thing distinct from the treasure of the United States. and gives to the treasury a local habitation and a name, in the new building which is erecting for the treasury department in the city of Washington. In the treasury, so consti- tuted, is to be placed that pittance of the public revenue which is gleaned from the District of Columbia. All else, that is to say, nine hundred and ninety-nine hundredths of the public revenue of the United States, is to be placed in the hands of the receivers- general, and the other depositaries beyond the District of Columbia. Now, the constitution of the United States provides that no money shall be drawn from the public treasury. but in virtue of a previous appropriation by law. That trifling portion of it, therefore, which is within the District of Columbia, will be under the safeguard of the constitution, and all else will be at the arbitrary disposal of the secretary of the treasury. It was deemed necessary, no doubt, to vest in the secretary of the treasury this vast and alarming discretionary power. A new and immense government bank is about to be erected. How it would work in all its parts could not be anticipated with certainty; and it was thought proper, therefore, to bestow a discretion commen- surate with its novelty and complexity, and adapted to any exigen- cies which might arise. The tenth section of the bill is that in which the power to create a bank is more particularly conferred. It is short, and I will read it to the senate. ' Section 10. And be it further enacted, that it shall be lawful for the secretary of the treasury to transfer the moneys in the hands of any depositary hereby constituted, to the treasury of the United States; to the mint at Philadelphia; to the branch mint at New Orleans; or to the offices of either of the receivers-general of public moneys, by this act directed to be appointed; to be there safely kept, according to the provisions of this act; and also to transfer moneys in the hands of any one depositary constituted by this art to any other depositary constituted by the same, AT HIS DISCRETION, and as the safety of the public moneys, and the convenience of thepublic service shall seem to him to require. And for the purpose of payments on the public account, it shall be lawful for the said secretary to draw upon any of the said depositaries, as he may think most conducive to the public intere.ts, or to the convenience of the public creditors, or both.' It will be seen, that it grants a power, perfectly undefined, to the secretary of the treasury, to shift and transfer the public money, from depositary to depositary, as he pleases. He is expressly authorized to transfer moneys in the hands of any one depositary, constituted by the act, to any other depositary constituted by it, at his discretion, and as the safety of the public moneys, and the 330 ON T HE SUB-TREASURY SCHEM 331E. convenience of the public service, shall seem to him to require. There is no specification of any contingency or contingencies, on which he is to act. All is left to his discretion. He is to judge when the public service, (and more indefinite terms could not have been employed,) shall seem to him to require it. It has been said, that this is nothing more than the customary power of transfer, exercised by the treasury department, from the origin of the govern- ment. I deny it; utterly deny it. It is a totally different power from that which was exercised by the cautious Gallatin, and other secretaries of the treasury - a power, by-the-bye, which, on more than one occasion, has been controverted, and which is infinitely more questionable than the power to establish a bank of the United States. The transfer was made by them rarely, in large sums, and were left to the banks to remit. When pavyments were made, they were effected in the notes of banks with which the public money was deposited, or to which it was transferred. The rates of exchange were regulated by the state of the market, and under the responsibility of the banks. But here is a power given to transfer the public moneys without limit, as to sumn, place, or time, leaving every thing to the discretion of the secretary of the treasury, the receivers-general, and other depositaries. What a scope is allowed in the fixation of the rates of exchange, whether of premium or discount, to regulate the whole domestic exchanges of the country, to exercise favoritism These former transfers were not made for disbursement, but as preparatory to disbursement; and when disbursed, it was generally in bank notes. The transfers of this bill are immediate payments, and payments made not in bank notes, but specie. The last paragraph in the section provides, that, for the purpose of payments on the public account, it shall be lawful for the secre- tary to draw upon any of the said depositaries, as he may think most conducive to the public interest, or to the convenience of the public creditors, or both. It will be seen, that no limit whatever is imposed upon the amount or form of the draft, or as to the depositary upon which it is drawn. He is made the exclusive judge of what is ' most conducive to the public interests.' Now, let us pause a moment, and trace the operation of the powers thus vested. The government has a revenue of from twenty to thirty millions. The secretary may draw it to any one or more points, as he pleases. More than a moiety of the revenue arising from customs is receiv- able at the port of New York, to which point the secretary may draw all portions of it, if he think it conducive to the public interest. A man has to receive, under an appropriation law, ten thousand dollars, and applies to Mr. Secretary for payment. Where will you receive it he is asked. On New York. How In drafts from five dollars to five hundred dollars. Mr. Secretary will give him these drafts accordingly, upon bank note paper, impressed like and 331 SPEECH ES OF HENRY CLAY. simulating bank notes, having all suitable emblazonry, signed by my friend the treasurer, (whose excellent practical sense, and solid andl sound judgment, if he had been at the head of the treasury, instead of Mr. Levi Woodbury, when the suspension of specie payments took place, would have relieved or mitigated the pecu- niary embarrassments of the government and the people,) counter- signed by the comptroller, and filled up in the usual way of bank lotes. Here is one of them, said Mr. Clay. (He here held up, to the gaze of the senate, a treasury note, having all the appearance of a b:tnk note, colored, engraved, and executed, like any other bankl; note, for fifty dollars.) This, continued Mr. Clay, is a government post note, put into circulation, paid out as money, and prepared and sent forth, gradually to accustom the people of this country to government paper. I have supposed ten thousand dollars to be received in the mode stated by a person entitled to receive it under an appropriation law. Now, let us suppose what he will do wvith it. Any where to the south or vest it will command a premium of from twvo to five per ceniiutn. Nowhere in the United States wvill it be under par. Do you snppose that the holder of these drafts would be fool enough lo convert then into specie, to be carried and transported at his ris!; Do you think that he would not prefer that his money should be in the responsible custody of the government, rather than in his own insecure keeping Do you think he will deny to himself the opportunity of realizing the premium of which he may be perfectly sure The greatest want of the country is a medium of general circulation, and of uniform value every where. That, especially, is our wvant in the western and interior states. Now, here is exactly such a medium; and, supposing the government bank to be honestly and faithfully administered, it will, during such an administration, be the best convertible paper money in the world, for twvo reasons. The first is, that every dollar of paper out will be the representative of a dollar of specie in the hands of the receivers-general, or other depositaries; and, secondly, if the receivers-general should embezzle the public money, the respon- sibility of the government to pay the drafts issued upon the basis of that money would remain unimpaired. The paper, therefore, would be as far superior to the paper of any private corporation as the ability and resources of the government of the United States are superior to those of such corporations. The banking capacity may be divided into three faculties: deposits, discount of bills of exchange, and promissory notes, or either, and circulation. This government bank would combine them all, except that it will not discount private notes, or receive private deposits. In payments for the public lands, indeed, indi- viduals are allowed to make deposits, and to receive certificates of their amount. To guard against their negotiability, a clause has 33a ON THE SUB-TfREASURY SCHEME. 333 been introduced to render them unassignable. But how will it be possible to maintain such an inconvenient restriction, in a country where every description of paper importing an obligation to pay money or deliver property is assignable, at law or in equity, from the eomnmercial nature and trading character of our people. Of all the faculties which I have stated of a bank, that wvhich creates a circulation is the most important to the community at large. It is that in which thousands may be interested, vho never obtained a discount, or made a deposit with a bank. Whatever a government agrees to receive in payment of the public dues is a irnedium of circulation; is money, current money, no matter what its form mav be- treasury notes, drafts (lrawvn at Washington, by the treasurer, on the receiver-general at New York, or, to use the language employed in various parts of this bill, ' such notes, bills, or paper, issued under the authority of the United States.' These various provisions were probably inserted not only to cover the case of treasury notes, but that of these drafts in due season. But if there were no express provision of law, that these drafts should be receivable in payment of public dues, they would, necessarily, be so employed, from their own intrinsic value. The want of the community of a general circulation of uniform value every where in the United States, would occasion vast amounts of the species of draft which I have described to remain in circulation. The appropriations this year will probably fall not much short of thirty millions. Thirty millions of treasury drafts on receivers general, of every denomination, and to any amount, may be issued by the secretary of the treasury. What amount would remain in circulation cannot be determined a priori, I suppose not less than ten or fifteen millions; at the end of another year, some ten or fifteen millions more; they would fill all the channels of circulation. The war between the government and state banks continuing, and this mammoth government bank being in the market, constantly demanding specie for its varied and ramified operations, confidence would be lost in the notes of the local banks, their paper would gradually cease to circulate, and the banks themselves would be crippled and broken. The paper of the government bank would ultimately fill the vacuum, as it would instantly occupy the place of the notes of the late bank of the United States. I am aware Mr. President, that by the twenty-fifth section of the bill, in order to disguise the purpose of the vast machinery which wve are about constructing, it is provided that it shall be the duty of the secretary of the treasury, to issue and publish regula- tions to enforce the speedy presentation of all government drafts for payment at the place where payable, and so forth. Nowv, what a tremendous power is here vested in the secretary! He is to prescribe rules and regulations to enforce the speedy presentation 333 SPEECHES OF HENRY CLAY. of all government drafts for payment at the place where payable. The speedy presentation! In the case I have supposed, a man has his ten thousand dollars, in drafts on the receiver-general at New York. The secretary is empowered to enact regulations requiring him speedily to present them, and if he do not, the secre- tary may order them to be paid at St. Louis. At New York they may be worth a premium of five per centum; on St. Louis, they may be liable to a discount of five per centum. Now, in a free government, who would ever think of subjecting the property or money of a citizen to the exercise of such a power by any secretary of the treasury What opportunity does it not afford to reward a partisan, or punish an opponent It will be impossible to main- tain such an odious and useless restriction for any length of time. Why should the debtor, (as the government would be, in the case of such drafts as I have supposed,) require his creditor, (as the holder of the draft would be,) to apply within a prescribed time for his payment No, sir; the system would control you; you could not so control the system. But if such a ridiculous restriction could be continued, the drafts would, nevertheless, whilst they were out, be the time long or short, perform the office of circulation and money. Let us trace a little further the operation of this government bank, and follow it out to its final explosion. I have supposed the appropriation of some thirty millions of dollars annually by the government, to be disbursed in the form of drafts, issued at Washington by the treasury department, upon. the depositaries. Of that amount, some ten or fifteen millions would remain, the first year, in circulation; at the end of another year, a similar amount would continue in circulation; and so on, from year to year, until, at the end of a series of some five or six years, there would be in circulation, to supply the indispensable wants of commerce and of a general medium of uniform value, not less than some sixty or eighty millions of drafts, issued by the govern- ment These drafts would be generally upon the receiver-general at New York, because on that point, they would be preferred over all others, as they would command a premium, or be at par, throughout the whole extent of the United States; and we have seen that the secretary of the treasury is invested with ample authority to concentrate at that point the whole revenue of the United States. All experience has demonstrated, that in banking operations, a much larger amount of paper can be kept out in circulation than the specie which it is necessary to retain in the vaults to meet it when presented for payment. The proportions which the same experience has ascertained to be entirely safe, are one of specie to three of paper. If, therefore, the executive government had sixty millions of dollars accumulated at the port of New York, in the 334 ON THE SUB-TREASURY SCHEME. hands of the receiver-general, represented by sixty millions of government drafts in circulation, it would be knowvni that twenty of that sixty millions would be sufficient to retain to meet any amount of drafts, which, in ordinary times, would be presented for payment. There would then remain forty millions in the vaults, idle and unproductive, and of which no practical use could be made. Well; a great election is at hand in the state of New York, the result of which will seal the fate of an existing adminis- tration. If the application of ten millions of that dormant capital could save, at some future day, a corrupt executive from overthrow, can it be doubted, that the ten millions would be applied to pre- serve it in power Again; let us suppose some great exigency to arise; a season of war, creating severe financial pressure and embarrassment. Would not an issue of paper, founded upon and exceeding the specie in the vaults, in some such proportions as experience had demonstrated might be safely emitted, be author- ized Finally, the whole amount of specie might be exhausted, and then, as it is easier to engrave and issue bank notes, than to perform the unpopular office of imposing taxes and burdens, the discovery would be made, that the credit of the government was a sufficient basis whereupon to make emissions of paper money, to be redeemed when peace and prosperity returned. Then we should have the days of continental money, and of assignats, restored! Then we should have that government paper medium which the senator from South Carolina, (Mr. Calhoun,) considers the most perfect of all currency! Meantime, and during the progress of this vast government machine, the state banks would be all prostrated. Working well, as it may, if honestly administered, in the first period of its exist- ence, it will be utterly impossible for them to maintain the unequal competition. They could not maintain it, even if the government were actuated by no unfriendly feelings towards them. But when we know the spirit which animates the present executive towards them, who can doubt that they must fall in the unequal contest Their issues will be discredited and discountenanced, and that system of bankruptcy which the president would even now put into operation against them, will, in the sequel, be passed and enforced without difficulty. Assuming the downfall of the local banks - the inevitable conse- quence of the operations of this great government bank; assuming, as I have shown would be the case, that the government would monopolize the paper issues of the country, and obtain the possession of a great portion of the specie of the country, we should then behold a combined and concentrated moneyed power, equal to that of all the existing banks of the United States, with that of the late bank of the United States superadded. This tremendous power would be wielded by the secretary of the treasury, 335 SPEECHES OF HENRY CLAY. acting under the immediate commands of the president of the United States. Here would be a perfect union of the sword and the purse; here would be no imaginary, but an actual, visible, tangible, consolidation of the moneyed power. Who or what could withstand it The states themselves would become suppli- ants at the feet of the executive for a portion of those paper emissions, of the power to issue whIch they had been stripped, and which he now exclusively possessed. Mr. President, my observation and experience have satisfied me, that the safety of liberty and property consists in the division of power, whether political or pecuniary. In our federative system, our security is to be found in that happy distribution of power which exists between the federal government and the state govern- inents. In our monetary system, as it lately existed, its excellence resulted from that beautiful arrangement, by which the states had their institutions for local purposes, and the general governrnent its institution for the more general purposes of the whole union. There existed the greatest congeniality between all the parts of this admirable system. All was homogeneous. There was no separa- tion of the federal government from the states or from the people. There was no attempt to execute practically that absurdity of sustaining, among the same people, two different currencies of unequal value. And how admirably did the whole system, during the forty years of its existence, move and work! And on the two unfortunate occasions of its ceasing to exist, how quickly did the business and transactions of the country run into wild disorder and utter confusion! Hitherto, I have considered this new project as it is, according to its true nature and character, and what it must inevitably become. I have not examined it as it is not, but as its friends would represent it to be. They hold out the idea that it is a simple contrivance to collect, to keep, and to disburse, the public revenue. In that viewv of it, every consideration of safety and security, recommends the agency of responsible corporations, rather than the employment of particular individuals. It has been shown, during the course of this debate, that the amount which has been lost by the defalcation of individuals has exceeded three or four times the amount of all that has been lost by the local banks, although the sums confided to the care of individuals have not been probably one tenth part of the amount that has been in the custody of the local banks. And we all know, that, during the forty years of existence of the two banks of the United States, not one cent wvas lost of the public revenue. I have been curious, Mr. President, to know whence this idea of receivers-general was derived. It has been supposed to have been borrowed from France. It required all the power of that most extraordinary man that ever lived, Napoleon Bonaparte, when he was 336 ON THE SUB-TREASURY SCHEME. in his meridian greatness, to displace the farmers-general, and to sub- stitute in their place the receivers-general. The new system requires, I think I have heard it stated, something like one hundred thousand employees to have it executed. And, notwithstanding the modesty of the infant promises of this new project, I have no doubt that ultimately we shall have to employ a number of persons approxi- mating to that which is retained in France. That will undoubtedly be the case whenever we shall revive the system of internal taxa- tion. In France, what reconciled them to the system was, that Napoleon first, and the Bourbons afterwards, were pleased with the immense patronage which it gave them. They liked to have one hundred thousand dependents to add strength to the throne, which had been recently constructed or reascended. I thought, however, that the learned chairman of the committee of finance must have had some other besides the French model for his receivers-general; and, accordingly, upon looking into Smith's history of his own state, I found, that, when it was yet a colony, some century and a half ago, and when its present noble capital still retained the name of New Amsterdam, the historian says; ' among the principal laws enacted at this session, we may men- tion that for establishing the revenue, which was drawn into precedent. The sums raised by it were made payable into the hands of receivers-general, and issued by the governor's warrant. By this means the governor became, for a season, independent of the people, and hence we find frequent instances of the assemblies contending with him for the discharge of debts to private persons, contracted on the faith of the government.' The then governor of the colony was a man of great violence of temper, and arbitrary in his conduct. How the sub-treasury system of that day operated the same historian informs us in a subsequent part of his work. ' The revenue,' he says, 'established the last year, was at this session continued five years longer than was originally intended. This was rendering the governor independent of the people. For, at that day, the assembly had no treasure, but the amount of all taxes went, of course, into the hands of the receiver-general, who was appointed by the crown. Out of this fund, moneys were only issuable by the governor's warrant, so that every officer in the government, from Mr. Blaithwait, who drew annually five per centum out of the revenue, as auditor-general, down to the meanest servant of the public, became dependent, solely, of the governor. And hence we find the house, at the close of every session, humbly addressing his excellency, for the trifling wages of their own clerk.' And, Mr. President, if this measure should unhappily pass, the day may come, when the senate of the United States will have humbly to implore some future president of the United States to grant it money to pay the wages of its own sergeant-at-arms, and doorkeeper. VOL. II. 43 337 SPEECHES OF HENRY CLAY. Who, Mr. President, are the most conspicuous of those, who perseveringly pressed this bill upon congress and the American people Its drawer is the distinguished gentleman in the white house, not far off; its endorser is the distinguished senator from South Carolina, here present. What the drawer thinks of the endorser, his cautious reserve and stifled enmity prevent us from knowing. But the frankness of the endorser has not left us in the same ignorance with respect to his opinion of the drawer. He has often expressed it upon the floor of the senate. On an occa- sion not very distant, denying to him any of the nobler qualities of the royal beast of the forest, he attributed to him those which belong to the most crafty, most skulking, and one of the meanest of the quadruped tribe. Mr. President, it is due to myself to say, that I do not altogether share with the senator from South Carolina in this opinion of the president of the United States. I have always found him, in his manners and deportment, civil, courteous, and gentlemanly; and he dispenses, in the noble mansion which he now occupies, one worthy the residence of the chief magistrate of a great people, a generous and liberal hospitality. An acquaint- ance with him, of more than twenty years' duration, has inspired me with a respect for the man, although, I regret to be compelled to say, I detest the magistrate. The eloquent senator from South Carolina has intimated that the course of my friends and myself. in opposing this bill, was unpatriotic, and that we ought to have followed in his lead; and, in a late letter of his, he has spoken of his alliance with us, and of his motives for quitting it. I cannot admit the justice of his reproach. We united, if, indeed, there were any alliance in the case, to restrain the enormous expansion of executive power; to arrest the progress of corruption; to rebuke usurpation; and to drive the Goths and Vandals from the capital; to expel Brennus and his horde from Rome, who, when he threw his sword into the scale, to augment the ransom demanded from the mistress of the world, showed his preference for gold; that he was a hard-money chieftain. It was by the much more valuable metal of iron that he was driven from her gates. And how often have we witnessed the senator from South Carolina, with woful countenance, and in doleful strains, pouring forth touching and mournful eloquence on the degeneracy of the times, and the downward tendency of the republic Day after day, in the senate, have we seen the displays of his lofty and impassioned eloquence. Although I shared largely with the senator, in his apprehension for the purity of our institutions, and the permanency of civil liberty, disposed always to look at the brighter side of human affairs, I was sometimes inclined to hope that the vivid imagination of the senator had depicted the dangers by which we were encompassed in somewhat stronger colors than they justified. The arduous contest in which 338 ON THE SUB-TREASURY SCHEME. we were so long engaged, was about to terminate in a glorious victory. The very object for which the alliance was formed, was about to be accomplished. At this critical moment the senator left us; he left us for the very purpose of preventing the success of the common cause. He took up his musket, knapsack, and shot-pouch, and joined the other party. He went, horse, foot, and dragoon, and he himself composed the whole corps. He went, as his present most distinguished ally commenced with his expunging resolution, solitary and alone. The earliest instance recorded in history, within my recollection, of an ally drawing off his forces fromn the combined army, was that of Achilles, at the siege of Troy. He withdrew with all his troops, and remained in the neighborhood, in sullen and dignified inactivity. But he did not join the Trojan forces; and when, during the progress of the siege, his faithful friend fell in battle, he raised his avenging arm, drove the Trojans back into the gates of Troy, and satiated his vengeance by slaying Priam's noblest and dearest son, the finest hero in the immortal Iliad. But Achilles had been wronged, or imagined himself wronged, in the person of the fair and beautiful Briseis. We did no wrong to the distinguished senator from South Carolina. On the contrary, we respected him, confided in his great and acknowledged ability, his uncommon genius, his extensive experi- ence, his supposed patriotism; above all, we confided in his stern and inflexible fidelity. Nevertheless, he left us, and joined our common opponents, distrusting and distrusted. He left us, as he tells us in his Edgefield letter, because the victory which our com- mon arms were about to achieve, was not to enure to him and his party, but exclusively to the benefit of his allies and their cause. I thought that, actuated by patriotism, (that noblest of human virtues,) we had been contending together for our common country, for her violated rights, her threatened liberties, her prostrate constitution. Never did I suppose that personal or party considerations entered into our views. Whether, if victory shall ever again be about to perch upon the standard of the spoils party, (the denomination which the senator from South Carolina has so often given to his present allies,) he will not feel himself constrained, by the princi- ples on which he has acted, to leave them, because it may not enure to the benefit of himself and his party, I leave to be adjusted between themselves. The speech of the senator from South Carolina was plausible, ingenious, abstract, metaphysical, and generalizing. It did not appear to me to be adapted to the bosoms and business of human life. It was ai rial, and not very high up in the air, Mr. President, either, not quite as high as Mr. Clayton was in his last ascension in his balloon. The senator announced that there was a single alternative, and no escape from one or the other branch of it. He stated that we must take the bill under consideration, or the substi- 339 30 SPEEChES OF HENRY CLAY. tute proposed by the senator from Virginia. I do not concur in that statement of the case. There is another course embraced in neither branch of the senator's alternative; and that course is, to do nothing; always the wisest, when you are not certain what you ought to do. Let us suppbse that neither branch of the alternative is accepted, and that nothing is done. What, then, would be the consequence There would be a restoration of the law of 1789, with all its cautious provisions and securities, provided by the wis- dom of our ancestors, which has been so trampled upon by the late and present administrations. By that law, establishing the treasury department, the treasure of the United States is to be received, kept, and disbursed, by the treasurer, under a bond with ample security, under a large penalty fixed by law, and not left, as this bill leaves it, to the uncertain discretion of a secretary of the treasury. If, therefore, we were to do nothing, that law would be revived; the treasurer would have the custody, as he ought to have, of the public money, and doubtless he would make special deposits of it, in all instances, with safe and sound state banks, as in some cases the secretary of the treasury is now obliged to do. Thus, we should have in operation that very special deposit system, so much desired by some gentlemen, by which the public money would remain separate and unmixed with the money of banks. There is yet another course, unembraced by either branch of the alternative presented by the senator from South Carolina; and that is, to establish a bank of the United States, constituted according to the old and approved method of forming such an institution, tested and sanctioned by experience; a bank of the United States, which should blend public and private interests, and be subject to public and private control, united together in such manner as to present safe and salutary checks against all abuses. The senator mistakes his own abandonment of that institution as ours. I know that the party in power has barricaded itself against the establishment of such a bank. It adopted, at the last extra session, the extraordi- nary and unprecedented resolution, that the people of the United States should not have such a bank, although it might be manifest that there was a clear majority of them demanding it. But the day may come, and I trust is not distant, when the will of the people must prevail in the councils of their own government; and, when it does arrive, a bank will be established. The senator from South Carolina reminds us that we denounced the pet bank system; and so we did, and so we do. But does it therefore follow, that, bad as that system was, we must be driven into the acceptance of a system infinitely worse He tells us that the bill under consideration takes the public funds out of the hands of the executive, and places them in the hands of the law. It does no such thing. They are now without law, it is true, in the custody of the executive; and the bill proposes by law to confirm them in ON THE SUB-TREASURY SCHEME. that custody, and to convey new and enormous powers of control to the executive over them. Every custodary of the public funds, provided by the bill, is a creature of the executive, dependent upon his breath, and subject to the same breath for removal, whenever the executive, from caprice, from tyranny, or from party motives, shall choose to order it. What safety is there for the public money, if there were a hundred subordinate executive officers charged with its care, whilst the doctrine of the absolute unity of the whole executive power, promulgated by the last administration, and persisted in by this, remains unrevoked and unrebuked. Whilst the senator from South Carolina professes to be the friend of state banks, he has attacked the whole banking system of the United States. He is their friend; he only thinks they are all un- constitutional! Why Because the coining power is possessed by the general government, and that coining power, he argues, was intended to supply a currency of the precious metals; but the state banks absorb the precious metals, and withdraw them from circulation, and, therefore, are in conflict with the coining power. That power, according to my view of it, is nothing but a naked authority to stamp certain pieces of the precious metals, in fixed proportions of alloy and pure metal, prescribed by law, so that their exact value may be known. When that office is performed, the power is functus officio; the money passes out of the mint, and becomes the lawful property of those who legally acquire it. They may do with it as they please, throw it into the ocean, bury it in the earth, or melt it in a crucible, without violating any law. When it has once left the vaults of the mint, the law-maker has nothing to do with it, but to protect it against those who attempt to debase or counterfeit, and, subsequently, to pass it as lawful money. In the sense in which the senator supposes banks to conflict with the coining power, foreign commerce, and especially our commerce with China, conflict with it much more extensively. That is the great absorbent of the precious metals, and is, therefore, much more unconstitutional than the state banks. Foreign commerce sends them out of the country; banks retain them within it. The distinguished senator is no enemy to the banks; he merely thinks them injurious to the morals and industry of the country. He likes them very well, but he nevertheless believes that they levy a tax of twenty-five millions annually on the industry of the country! Let us examine, Mr. President, how this enormous and iniquitous assessment is made, according to the argument of the senator from South Carolina. He states that there is a mass of debt due from the community to the banks, amounting to four hundred and seventy-five millions of dollars, the interest upon which, constitut- ing about that sum of twenty-five millions of dollars, forms the exceptionable tax. Now, this sum is not paid by the whole com- munity, but only by those individuals who obtain discounts from 341 SPEECHES OF HENRY CLAY. the banks. They borrow money at six per centum interest, and invest it in profitable adventures, or otherwise employ it. They would not borrow it if they did not suppose they could make profit by it; and the probability is, that they do make profit by it. Instead, therefore, of there being any loss in the operation, there is an actual gain to the community, by the excess of profit made beyond six per centum interest, which they pay. What are banks They are mere organized agencies, for the loan of money, and the transaction of monetary business; regulated agencies, acting under the prescriptions of law, and subject to a responsibility, moral and legal, far transcending that under which any private capitalist ope- rates. A number of persons, not choosing to lend out their money privately, associate together, bring their respective capitals into a common stock, which is controlled and managed by the corporate government of a bank. If no association whatever had been formed, a large portion of this capital, a large portion, therefore, of that very debt of four hundred and seventy-five millions of dollars, would still exist, in the shape of private loans. The senator from South Carolina might as well collect the aggregate amount of il the mortgages, bonds, and notes, which have been executed in the United States, for loans, and assert that the interest paid upon the total sum, constituted a tax, levied upon the community. In the liquidation of the debt due to the banks from the com- munity, and from the banks to the community, there would not be as much difficulty as the senator seems to apprehend. From the mass of debts due to the banks are to be deducted, first, the amount of subscriptions which constitute their capitals; secondly, the amount of deposits to the credit of individuals in their custody; and, thirdly, the amount of their notes in circulation. How easily will these mutual debts neutralize each other! The same person, in numberless instances, will combine in himself the relations both of creditor and debtor. The only general operation of banks beyond their discounts and deposits, which pervades the whole community, is that of furnishing a circulation in redeemable paper, beyond the amount of specie to redeem it in their vaults. And can it be doubted that this additional supply of money furnishes a powerful stimulus to industry and production, fully compensating any casual incon- veniences, which sometimes, though rarely, occur Banks reduce the rate of interest, and repress inordinate usury. The salutary influence of banking operations is demonstrated in countries and sections of country where they prevail, when contrasted with those in which they are not found. In the former, all is bustle, activity, general prosperity. The country is beautified and adorned by the noble works of internal improvement; the cities are filled with splendid edifices, and the wharves covered with the rich produc- tions of our own or of foreign climates. In the latter, all is slug- 342 ON THE SUB-TREASURY SCHEME. gishness, slothfulness, and inactivity. England, in modern times, illustrates the great advantages of banks, of credit, and of stimu- lated industry. Contrast her with Spain, destitute of all those advantages. In ancient times, Athens would present an image of full and active employment of all the energies of man, carried to the highest point of civilization, whilst her neighbor, Sparta, with her iron money, affords another of the boasted benefits of metallic circulation. The senator from South Carolina would do the banks no harm; but they are deemed by him highly injurious to the planting inter- est! According to him, they inflate prices, and the poor planter sells his productions for hard money, and has to purchase his sup- plies at the swollen prices produced by a paper medium. Now, I must dissent altogether from the senator's statement of the case. England, the principal customer of the planter, is quite as much, if not more, a paper country than ours. And the paper-money prices of the one country are neutralized by the paper-money prices of the other country. If the argument were true, that a paper-money country trades disadvantageously with a hard-money country, we ought to continue to employ a paper medium, to coun- terbalance the paper medium of England. And if we were to banish our paper, and substitute altogether a metallic currency, we should be exposed to the very inequality which has been insisted upon. But there is nothing in that view of the matter which is presented by the senator from South Carolina. If, as he asserts, prices were always inflated in this country, beyond their standard in England, the rate of exchange would be constantly against us. An examination, however, into the actual state of exchange between the two countries, for a long series of years, evinces that it has generally been in our favor. In the direct trade between England and this country, I have no doubt there is a large annual balance against us; but that balance is adjusted and liquidated by balances in our favor in other branches of our foreign trade, which have finally concentrated in England, as the great centre of the commercial world. Of all the interests and branches of industry in this country, none has profited more by the use and employment of credit and capital derived from banks and other sources, than the planting interest. It habitually employs credit in all countries where plant- ing agriculture prevails. The states of Alabama, Mississippi, Arkansas, and Louisiana, have almost sprung into existence, as it were, by magic, or, at least, have been vastly improved and ex- tended, under the influence of the credit system. Lands, slaves, utensils, beasts of burden, and other supplies, have been constantly bought, and still continue to be purchased, upon credit; and bank agency is all essential to give the most beneficial operation to these credits. But the argument of the senator from South Carolina, 343 SPEECHES OF HENRY CLAY. which I am combating, would not be correct, if it were true that we have inflated prices on this side of the Atlantic, without a cor- responding inflation of price on the other side; because the planter generally selling at home, and buying at home, the proceeds of his sale, whatever they may be, constitute the means by which he effects his purchases, and consequently neutralize each other. In what do we of the west receive payment for the immense quantity of live stock and other produce of our industry, which we annually sell to the south and southwest, but that paper medium now so much decried and denounced The senator from South Carolina is very fond of the state banks; but he thinks there is no legitimate currency except that of the constitution. He contends that the power which the government possesses to impose taxes, restricts it, in their payment, to the receipt of the precious metals. But the constitution does not say so. The power is given in broad and unrestricted terms; and the government is left at liberty to collect the taxes in whatever medium or commodity, from the exigencies of the case, it can collect them. It is, doubtless, much the most convenient to collect them in money, because that represents, or can command, every thing, the want of which is implied by the power of taxation. But suppose there was no money in the country; none, whatever, to be extorted by the tax-gatherer from an impoverished people Is the power of government to cease, and the people to be thrown back into a state of nature The senator asks, if taxes could be levied and collected in tobacco, in cotton, and other commodities Undoubtedly they could, if the necessity existed for such an inconvenient imposition. Such a case of necessity did exist in the colony of Virginia, and other colonies, prior to the revolution, and taxes were accordingly levied in tobacco or other commodities, as wolf-scalps, even at this day, compose a part of the revenue of more than one state. The argument, then, of the senator, against the right of the government to receive bank notes in payment of public dues, a practice coeval with the existence of the government, does not seem to me to be sound. It is not accurate, for another reason. Bank notes, when convertible at the will of the holder into specie, are so much counted or told specie, like the specie which is counted and put in marked kegs, denoting the quantity of their contents. The senator tells us, that it has been only within a few days that he has discovered that it is illegal to receive bank notes in payment of public dues. Does he think that the usage of the government, under all its administrations, and with every party in power, which has prevailed for nigh fifty years, ought to be set aside by a novel theory of his, just dreamed into existence, even if it possess the merit of ingenuity The bill under consideration, which has been eulogized by the senator as perfect in its structure and details, contains a provision that bank notes shall be received 344 ON THE SUB-TREASURY SCHEME. 3EE in diminished proportions, during a term of six years. He himself. introduced that identical principle. It is the only part Qf the bill that is emphatically his. How, then, can he contend that it is unconstitutional to receive bank notes in payment of public dues I appeal from himself to himself. The senator further contends, that general deposits cannot be made with banks, and be thus confounded with the general mass of the funds on which they transact business. The argument supposes that the money collect- ed for taxes must be preserved in identity; but that is impossible, often, to do. May not a collector give the small change which he has received from one tax-payer, to another tax-payer, to enable him to effect his payment May he not change gold for silver, or vice versa, or both, if he be a distant collector, to obtain an undoubted remittance to the public treasurv What, Mr. President, is the process of making deposits with banks The deposit is made, and a credit is entered for its amount to the government. That credit is supposed to be the exact equivalent of the amount deposited, ready and forthcoming to the government whenever it is wanted for the purposes of disbursement. It is immaterial to the government whether it receives back again the identical money put in, or other money of equal value. All that it wants is, what it put in the bank, or its equivalent; and that, in ordinary times, with such prudent banks as alone ought to be selected, it is sure of getting. Again: the treasury has frequently to make remittances to foreign countries, to meet the expenditure necessary there for our naval squadrons, and other purposes. They are made to the bankers, to the Barings or the Rothschilds, in the form of bills of exchange, purchased in the market by the agents of the govern- rnent here, with money drawn out of the treasury. Here is one conversion of the money received from the tax-gatherer into the treasury. The bills are transmitted to the bankers, honored, paid, and the amount credited by them to the United States. Are the bankers bound to retain the proceeds of the bills in identity Are they bound to do more than credit the government for an equal amount, for which they stand responsible, whenever it is wanted If they should happen to use any portion of those very proceeds of bills remitted to them in their banking operations, would it be drawing money from the treasury, contrary to the provisions of the constitution The senator from South Carolina contends, that there is no constitutional power to contract with the twenty-five selected banks, as proposed in the substitute; yet the deposit act of 1836, which obtained the hearty approbation of that senator, contained a similar provision; and the very bill under considera- tion, so warmly supported by him, provides, under certain contingencies, for contracts to be made with state banks, to receive deposits of the public money upon compensation. He objects to the substitute, that it converts twenty-five state banks into a system VoL. II. 44 345 SPEECHES OF HENRY CLAY. of federal institutions; but the employment of state institutions by the federal authority, no more makes them federal, than the employment of federal institutions by the states, converts them into state institutions. This mutual aid, and this reciprocal employment of the several institutions of the general and particu- lar governments, is one of the results and beauties of our admirable, though complex system of government. The general government has the use of the capital, court-houses, prisons, and penitentiaries, in the several states. Do they, therefore, cease to appertain to the states It is to be borne in mind, that although the state banks may occasionally be used by the federal authority, their legal responsibility to the several states remains unimpaired. They continue to be accountable to them, and their existence can only be terminated or prolonged by the state authority. And being governed, as they are, by corporate authority, emanating from, and amenable to, state jurisdiction, and not under the control of the executive of the United States, constitutes at once a greater security for the public money, and more safety to the public liberty. It has been argued that a separation of the government from the banks will diminish the executive power. It must be admitted that the custody of the public money in various banks, subject to the control of state authority, furnishes some check upon the pos- sible abuses of the executive government. But the argument maintains, that the executive has least power when it has most complete possession of the public treasury! The senator from South Carolina contends that the separation in question being once effected, the relation of the federal government and the state banks will be antagonistical. I believe so, Mr. President. That is the very thing I wish to prevent. I want them to live in peace, harmony, and friendship. If they are antagonists, how is it possi- ble that the state banks can maintain their existence against the tremendous influence of this government Especially, if this government should be backed by such a vast treasury bank, as I verily believe this bill is intended to create! And what becomes of the argument urged by the senator from South Carolina, and the abolition resolutions offered by him at an earl