Continued from page 282. REPORT 2. Special agents of the Bank were appointed, who proceeded to England, and upon the sale of some, and hypothecation of other securities, procured a loan of eight hundred Of the Board of Directors of the Bank of the United and sixty thousand pounds sterling. With resources such States, to the Stockholders. To the Stockholders of the Bank of the United States in general meeting, assembled pursuant to their adjournment on the 4th of January, 1841. The Board of Directors present the following summary of their transactions since their report in January last, and of the state of the Bank on the 1st inst. At the time of the annual meeting of the Stockholders, and for some months previous, the Board were earnestly employed in making arrangements for the resumption of specie payments on the 15th January, 1841, the day fixed by an act of the Legislature of Pennsylvania, for a general resumption by the Banks of this State. The Bank has already shown to the Legislature of the Commonwealth, that in obedience to law, on the 15th January, 1841, all her notes, bills, deposits, and other liabilities were paid in gold or silver coin, or its equivalent, and that such payments were continued until the 4th day of February last, when it became necessary to discontinue them. The efforts that were made, and rescources provided to commence and sustain the resumption of cash payments, were deemed adequate by the Directors at the time, and under any but the peculiar circumstances in which the Bank was placed, the means collected would have proved amply sufficient to enable it to have continued specie payments indefinitely. It was, however, soon made manifest, that a feeling of hostility to the Institution, or what was equally destructive, a pervading distrust of its credit and means, existed to an extent so great, as to render the undertaking hopeless unless the Bank was prepared to meet every dollar of her liabilities with a dollar of coin: every species of demand was urgently pressed, and in the course of thirty days upwards of six millions of dollars were demanded and received by her creditors in specie and funds equivalent to specie. This unusual demand continued unabated, and it became perfectly certain that it would be fruitless to persevere in the effort--and on the 4th day of February, 1841, the Directors deemed it indispensable to discontinue payments in specie. The condition of the Bank, its resources and liabilities on the day of resumption, on that of suspension, and on the 1st day of the present month, are now placed before this meeting in the following exhibits hereto annexed. No. 1. Statement of Assets and Liabilities of the 14th January, 1841. No. 2. No. 3. do do do do do do 66 4th February, 1841. 1st April, Many circumstances rendered the preparations for resumption difficult and onerous. The large investment of the funds of the Bank in loans and securities of an inflexible and inconvertible character, the peculiar depression existing in the value of all species of property, with the stagnation or unproductiveness of all branches of commercial and other business, rendered it impracticable to obtain cash means, either by sales of securities, or collections of debts, except to a very moderate extent. The instant demand upon the Bank for the redemption of her circulation was also greatly increased by the fact of its having been adopted as the exclusive currency by the other Banks of Philadelphia, and consequently held by them in greater masses than at any previous time. It was, therefore, found necessary by the Directors, to enable the Bank to resume cash payments First, To postpone the redemption of a part of their cir culation. as these, added to the amount of coin on hand, the board did not hesitate in entering with the other Banks upon the work of resumption, with confidence in the ability of this Bank to persevere therein. It was, however, on the eve of this resumption discovered, that the Banks of Philadelphia had on hand a greater amount of notes of the Bank of the United States than had been arranged for, and the Directors were, at that late hour informed that payment of the same in specie to the extent of 1,500,000 dollars would be required. This demand was promptly complied with: another claim, to the amount of 1,100,000 dollars was pressed upon the Bank at the same time and paid in full. Numerous suits had been instituted against the Bank during the suspension, principally by Eastern holders of her notes; these suits were pending in the Supreme Court of this State. The parties at this point agreed to relinquish their claim to extra interest upon condition of immediate payment, which was instantly acceded to by the Bank. In addition to these demands, the inability of the Commonwealth to provide for the interest on call on this Bank for an advance of one half of the loan of the State debt, falling due on February 1, 1841, produced a 800,000 dollars, and not only was the amount of 400,000 dollars so taken by this Bank paid in specie; but the residue being paid by the other Banks in notes of this Bank, created an instant demand for the whole sum in coin. Thus, upwards of three millions of dollars of the funds provided, were immediately absorbed at the moment of resumption in discharge of these three claims-whilst its remaining means and its daily collections were, as has been above stated, soon exhausted by demands pressed upon it, in a manner unparalleled, it is believed, in the annals of banking. Committee of their own body a full report of the resources, liabilities and condition of the Bank, it is not thought necessary by the Directors to present more detailed statements than those which accompany this communication. They feel it their duty, however, to invite the attention of the Stockholders to some considerations growing out of the actual situation of the institution-and calling for prompt measures of protection for the property of the Bank from any undue or compulsory sacrifice. As the Stockholders of the Bank will receive from the Since the suspension of cash payments on the 4th of February last, the Banks of Philadelphia have refused to receive the notes of this Bank in deposit or payment of debts, and consequently they have become unavailable to the holders or only available at a depreciation. Many of such holders have instituted legal proceedings-in some instances for the purpose of enforcing a forfeiture of the charter-in others for the recovery of payment in specie by judgment and execution. If this course should be adopted by others, and for larger amounts, it is obvious that the property and resources of the Bank may be ruinously sacrificed and unequally appropriated. Any general measures to avert these evils, the Directors are advised by counsel, can only be authorized by a general meeting of Stockholders, and to their decision the subject is submitted by this Board. Of a similar character and requiring the same interposition, is an application recently made and now pending, by the Banks of the city and county of Philadelphia for the appropriation specifically of a sufficient amount of the assets of this Bank, by deposit, trust, or otherwise, to secure the payment of the post notes of this Bank, issued to them on the 15th December 1840, to the amount of five millions of dollars, which arrive at instalments. Secondly, To anticipate the sale of securities and collec-maturity from September 1841, to June 1842, in monthly tion of debts, by obtaining an advance upon them at home or abroad: Both these courses were successfully adopted. 1. An arrangement was entered into with the other Banks of the city and county of Philadelphia, in December 1840, whereby they surrendered to the Bank of the United States five millions of dollars of her notes upon receiving post notes of a like amount, payable in nine to eighteen months. As the present meeting of the Stockholders was rapidly approaching, the Board of Directors did not act upon this application, and now feel bound to submit the question to them for decision. All which is respectfully submitted by order of the Board of Directors. Bank of the United States, April 3d, 1841. COMPARATIVE VIEW Of the Assets and Liabilities of the Bank of the United States, its Offices and Agencies, January 14, February 4, April 1, 1841. For the following interesting document, we are indebted to the Secretary of the State of Ohio. Area. The State contains a fraction over 40,000 square miles, or 25,600,000 acres. Population. Ohio became a State A. D. 1802. Estimated population.... 50,000 230,760 increase in 8 years...180,760 581,454 66 in 10 66 ...350,674 ...356,245 .1,515,161 Valuation. Real property subject to taxation, as valued for that purpose in 1840 Total amount of taxable property, as valued for that purpose . Estimated amount for the current year (1841) one hundred and twenty-eight millions.* Exports in 1840. Bread stuffs, mostly wheat and flour,-estimated value... Other agricultural products including distilled spirits..... Products of domestic animals, chiefly pork, lard, butter, cheese and wool 26,947,961 00 .$126,102,706 00 $7,098,810 00 1,874,402 00 2,315,069 00 2,600,000 00 782,700 00 5,000,000 00 .$19,670,981 00 Cost of repairs and col of tolls, &c. $122,004 24 20,192 99 Expense of repairs on these works not separated from cost of construction. Ohio Canal and branches.. ..33S Wabash and Erie Canal (in Ohio) 89 .125 1,506,909 83 Hocking Valley Canal..... 56 621,375 28 Walhonding Canal.... finished. Muskingum River improvement... 90 From estimated amount necessary to be provided by the State to finish public works deduct estimated proceeds of Wabash and Erie and Miami Extension Canal Lands, 379,552 acres at $3 per acre-$1,138,656; leaving the sum of $2,398,270 53 to be provided by loans. State Debt. Due on 6 per cent. stock payable 1850, '56 & '60, in N. York. Six months' interest on moneys to be borrowed during current year, say.. Total interest chargeable on revenue of current year, (1841).... 50,000 00 .$820,804 10 .$400,000 00 36,000 00 15,000 00 30,090 90 352,000 00 $833,090 90 * Lands are valued for taxation as if in a state of nature, taking into view the value reflected by surrounding improvements, but without reference to the improvements on the land itself. The true value of the real property of the State cannot be less than $400,000,000; of personal property, not less than $150,000,000. † One-third of these Canals, only, is owned by the State. The money paid by the State, only, is given in the above table. + One-half only belongs to the State. The payments made and to be made by the State, as above given, are paid on this half. This item should not be considered as part of the debt of the State; the avails not having been applied in the construction of works owned by the State, and the Railroad Companies having secured the payment. Of His Excellency, William W. Ellsworth, Governor of Connecticut to the Legislature of the State. May Session, 1841. Fellow-Citizens of the Senate and of the House of Representatives: The annual assembling of the Representatives of a free people, is a spectacle of rare occurrence in the history of mankind, and one that gives enviable distinction to this republican nation. Most governments have had their origin in violence or accident, been sustained by undelegated power, and administered with too little regard to the general good: ours on the contrary, is a government chosen by the people, established on principles most favorable to their interests; and in its administration by themselves, most beneficent in its effects upon their well-being. Such, gentlemen, is the government which is now to occupy our attention; and we are not qualified to enter upon the duties before us, if we are not sensible of our peculiar privileges, and vigilant to maintain them for those who come after us. interest we shall watch those who are intrusted with our national affairs. They may not be able immediately to surmount the difficulties which encompass their path, and at once restore confidence and prosperity: but we may reason ably and safely calculate upon all that can be accomplished by distinguished abilities and unremitted devotion to the public weal. The General Government. The Constitution of the United States, has committed to the general government many important interests of the individual States. Their foreign trade, their national currency, and public domain are chiefly committed to the exclusive control of Congress, but are not so foreign to State Legislation that we may not express to Congress the wants of our constituents, and point out the evils which they suffer or apprehend from national measures. Having on former occasions presented to the Assembly my sentiments upon the above mentioned, and kindred subjects, I will not at this time recapitulate. But will take occasion to acknowledge the pleasure it affords me (so far as I may infer from this renewed expression of confidence) that my opinions are in accordance with those of so great a majority of the people of Connecticut. And I would add, after such unequivocal indications of extensive dissatisfaction throughout the country, with the policy of the late adminisChief Magistrate, or his Counsellors, to persevere in measures which have proved unfavorable to general prosperity, and left perplexity and distress in their course. If there be any reason to believe that our own representatives are not sufficiently acquainted with the wishes of this Assembly, or that a reiteration of resolutions will tend to induce Congress to pursue a more stable and enlightened policy, you will give these subjects your careful attention. Change of the General Administration. Since the last session, our nation, amounting to eighteen millions of people, by the quiet exercise of the elective franchise, has changed the general administration, and manifest-tration, there can be no disposition on the part of our present ed a wish to alter the policy, which for some time, has distinguished its measures. The event argues well for the stability of republican governments, and the moral power of public sentiment, in these United States. Production of domestic industry-Tariff. There is, however, one topic worthy of especial consideration, the protection of domestic industry; and should you agree with me as to the expediency and necessity of awakening public interest on this subject, and urging more patriotic views upon Congress, you will make known your sentiments, by passing suitable resolutions. With great and almost unexampled unanimity, the country called from retirement, a patriot of distinguished excellence, whom it placed at her head, to accomplish the objects of the change. With true devotion and ardent desires for his country's welfare; strong in the affections and confidence of his fellow-citizens, he entered upon his duties with flattering prospects of life and usefulness. With him he united in council, statesmen most worthy of the honor; ready to co-operate with him, in measures which wisdom might dictate. What he would have accomplished had his life been continued; how far he would have carried out principles avowed at the opening of his administration, and to what extent restored harmony and prosperity to that country, in A revision of the tariff is soon to engage the attention of whose defence he had so often perifed life, it is not permitted Congress. It seems to me there is no question what course us to know; but his whole life, public and private; his great of measures is dictated, by the wants of our countrymen. wisdom, tried patriotism, honesty and intelligence, gave satis- The last Assembly passed resolutions instructing our Reprefactory assurances, that his administration would not have sentatives to resist, by all constitutional means, every attempt disappointed our hopes, but have invigorated the Constitu- to destroy or impair a protective tariff. The more I have tion, for which he uttered his last wishes, strengthened the reflected upon the policy of a protective tariff, and its bear Union and poured blessings upon the nation. But, God having on the affairs of New England, and other States, the ing ordered otherwise, has removed him from his high station, under circumstances most affecting and impressive. We feel the disappointment. We mourn the loss. We bow with submission to that Holy Providence which orders all events in wisdom, respecting the welfare of individuals and nations. His dying injunction to have the principles of "the Constitution understood and carried out," will be duly impressed on the mind of the eminent person, who has succeeded, by this event, to the Chief Magistracy; a statesman, long distinguished in our public councils, of profound experience, spotless integrity, liberal and enlightened views, and attached to the policy, guarantied, by his predecessor. With deep VOL. IV.-39 deeper is my conviction, that duties should not be imposed by a uniform rule, but be so adjusted, as to aid our industry against foreign competition. We cannot yield to the doc trines of free trade, for the obvious reason, that such a trade does not exist, and will not be reciprocated to us. Among advanced nations, it has not hitherto existed; and if we may judge from the past or present state of the world, we cannot anticipate it for the future. However beautiful in theory, such is the diversity in the natural and superinduced condition of the chief nations of the world, that free trade would be found impracticable, and I am fully convinced it will never be introduced. England and France, with whom is most of our commerce, will never consent to open a new, and hitherto unpracticed trade, with the United States. Their restrictive policy is unchangeably established, and whether wise or unwise, liberal or illiberal, it enters so deeply into their political relations, into the very texture of their domestic and foreign interests, that we may not expect such a radical change in their commerce and system of taxation. If England would open even her colonial ports to a free trade, we should find some relaxation of her rigid policy, and hope for more free commercial intercourse; but at present, we are debarred all reciprocity whatever; our grain, tobacco, and other products, if admitted at all into any of her ports, being burdened with enormous and ruinous duties. So long as England and France continue to lay us under such contributions annually for their wines, their silks, and other manu-procure a better from any other quarter, and especially from factured goods, we must protect ourselves by counter enact ments, or forego our manufactures, never again to be revived. Is it wise for a nation of eighteen millions of people, to shut up their own workshops and open others in Europe; to contract from year to year a national debt, the inevitable consequence of large importations; and by rendering the market unsteady, or by opening it to the fluctuations incident to the trade of Europe, suffer our own establishments to be broken down, and an extensive depression of labor? Our products multiplied as they must be, if agricultural pursuits become universal, will perish without a market, or sell at prices greatly reduced. The interest of the farmer and Southern planter, are most certainly promoted by extending manufactures, as tending to divide and diversify labor, and create a certain and convenient market. I am not an advocate for a tariff beyond the wants of the government; but let its necessary revenue be raised by a system of duties so adjusted, as to protect the industry of our citizens. I enter tain great confidence, that if such a tariff, was the established and steady policy of the country, not to be broken in upon by any change of men or measures; and together with it, we possessed the currency which we enjoyed for forty years, to facilitate the trading intercourse of States, now fatally sundered, the gloom which has so long settled upon us would be dispelled, and hope and confidence, and courage, shed a cheerful light over many an anxious and desponding heart. As respects the exact character of a tariff, all agree, that a tax on consumption, or in other words, duties on imported goods, collected by government officers at the custom-house, is the best and least expensive method of raising a national revenue. Whether these duties shall be laid by a uniform rule, or apportioned so as to avoid a hurtful competition from the surplus capital and pauper labor of Europe, is the question to be decided. The compromise act, so called, passed in the year 1832, virtually gives up the principle of discrimination. Distinguished statesmen in the South, who profess to speak the sentiments of that section of the Union, (how correctly I cannot say,) assert that a discriminating tariff, with special reference to domestic industry, is inexpedient and unconstitutional; that it will destroy the peculiar rights and interests of the southern planter, and is contrary to the very spirit of the Constitution. Now I have sought in vain, for any such limitation of the benefits of a tariff'; and I am confident that the provisions of the Constitution, are broad enough, and clear enough, to sustain the advocate of American industry. In regulating commerce, as in exorcising other powers of the Constitution, Congress is obliged to seek after the greatest good, and surely it ought not to seek after, or be satisfied with, the attainment of any thing less. The advocate of the planting interests professes to believe, that unrestricted trade with England and France, would increase the demand for, and enhance the price of southern cotton, in Europe. He therefore pleads for the removal of every obstruction to commerce, and for the greatest encouragement of importations. He is not satisfied with free exports, which he now enjoys, but insists upon free imports, let them consist of what they may. It is his theory to manufacture little and import much. I am convinced this class of politicians, are combating commercial impediments, which have no existence but in imagination; and that their boasted theory in favor of free importa tions, is untrue in its essential principles. Neither experience nor reason will establish the fact, that southern cotton will not sell in Europe if our importations are lessened, and greatly lessened; nor that the encouragement of a domestic market for cotton, will not counterbalance the loss, if there would be a loss, resulting from a diminution of foreign commerce. It is quite certain that hitherto the amount of cotton exported, and of merchandise imported, has not always corresponded in amount; and hence the theory against which we contend, is fallacious and productive of injury.— It is interest, interest only, which induces England and France to purchase our cotton. Is it from any affection for us-do they not find this article to be for them, the most profitable within their reach; and when either of them can their own possessions in the East, for which England is now putting forth strenuous and unexampled efforts, will their ports be any longer open to our cotton, or will not this trade be brought within the exclusive policy which distinguishes all their laws of trade and manufactures? To me it appears obvious, that every American, whether he be a farmer, planter, or manufacturer, is interested in extending the domestic market for cotton-a market, which the American can for ever and fully secure to himself, and which, until of late, has been regularly and rapidly increasing. The southern politician is mistaken in the cardinal principle of his theory; that duty on imports, is a duty on exports." It is a tax chiefly on consumption; to some extent on foreign capital and labor. If indeed it be true, that a duty on imports is a tax on consumption, then the consumer is most affected by the tariff, and not the southern planter. The South in proportion to its population, consumes less, very much less, than the North, or the States of free labor, both on account of climate, and the character of their laboring people. Besides, is it nothing, to afford employment to our countrymen, to render them comfortable and happy, and provide the means by which they may educate and establish their families? Is it nothing to secure to labor its just value, and ready markets to agricultural productions, and save ourselves from the annual drain of a foreign debt, the millions paid to France for her silks, and to England for her numerous manufactures? This country abounds in the raw material used in the manufacture of many of the articles imported, and with proper attention, these materials may be vastly augmented, and rendered adequate to the supply of our wants. Why now send them abroad to be wrought? We have capital enough, water power enough, hands waiting to be employed; and in a brief period, might become to a great extent, independent of European work-shops. I ask again, is it not important to make the most of our own resources, to re-animate once more, our manufacturing villages, and embellish this glorious land with countless, flourishing and smiling hamlets, where content and plenty shall dwell securely? The policy advocated by certain southern politicians, if followed out in its consequences, would not merely impoverish the country; it would make us vassals of foreign capitalists, and wither the dearest interests of New England. When the compromise act, so called, was passed, I well recollect that gentlemen from the planting States asserted, on the floor of Congress, that in 1842, when the act would take full effect, we should see that the planting States had been paying well nigh the whole of the national revenue, as they said, by the artful and disguised operations of duties on imports. The time has nearly arrived, but the discovery has not been made, while in the meantime, both the North and the South have been greatly impoverished. The policy of a protective tariff is so much affected by considerations, growing out of another interest, that I trust I shall not be accused of asperity towards the South, or of officious interference in their concerns, by expressing the opinion that free labor throughout this nation, and especially the manufacturing portions of it, is interested in the numerous and powerful influences of slavery. But that I may not be misapprehended, let me observe, that, in the government, we should not depart from the Constitution of the United States, the supreme political law of the land, |