Lynchburg Virginian

Afterwards brought forward respectively, propositions in reference to the use of banks as depositories, and the receipt of bank notes in payment of government dues; but they were not considered.

Mr. Adams again occupied an hour with his speech concerning the annexation of Texas to the Union, and was again interrupted before he had concluded his remarks, by the arrival of the time for taking up the orders of the day.

About one o'clock the House went into Committee, and took up the bill for increasing the Military establishment of the United States.

SENATE—MR. WEBSTER'S BILL.—As soon as the journal was read, Mr. Webster gave notice that to-morrow he would call up from the table, the bill introduced by him some days since, in regard to the use of banks as public depositories, and the reception of the notes of banks issuing notes of a denomination under five dollars.

Termination of the Session.

On motion of Mr. Buchanan, the joint Resolution from the House, fixing the second Monday in July for closing the session, was taken up.

Mr. Benton objected to binding the Senate to a particular time for terminating the session, and moved to postpone the resolution to Monday next.

Some conversation ensued on the subject, between Messrs. Buchanan, Grundy and Benton, the result of which was the rejection of Benton's motion, he having only obtained 8 votes for postponing, and there were thirty-nine against it.

The resolution was then adopted without a division.

So it is settled that the Session will terminate on the 9th of July.

Washington, June 27, 1838:

To-day, Mr. Webster called up the Bill introduced by him some days ago, making provisions in regard to the use of banks as public depositories: and for the receipt of notes of banks issuing bills of a less denomination than five dollars.

This distinguished Senator took occasion to explain at some length the objects and provisions of the bill: and show the application of them to the existing state of the law.

Sometime ago (said Mr. W.) Congress passed a joint resolution prohibiting the Secretary of the Treasury from issuing or continuing in force any general order making any discrimination as to the funds or medium of payment receivable in the various branches of the public revenue. The effect of that resolution was to repeal the Specie Circular of July, 1836. But on the passage of that resolution, a new Treasury order was issued, which, under the existing state of things, had a most pernicious effect, and rendered the operation of the Resolution less beneficial and extensive, than was desirable. Were the Treasury Order of July, 1836, out of the case, then by the rule founded on the Joint Resolution of 1816, and on the Deposite Act of 1836, the notes of specie-paying banks would be receivable in payment of the debts and dues of the Government, with the exception contained in the 3d section of the Deposite Law, which declares that the notes of no banks shall be receivable that do not redeem them in specie: and that, no banks shall be selected as depositories which shall issue notes of a less denomination than five dollars: and farther that the notes of no banks shall be receivable, which shall issue notes of a less denomination than five dollars. Thus last mentioned clause applies to bills, or to banks issuing bills which were receivable under the resolution of 1837, but which are now excluded under the act of 1836.

Mr. Webster then drew the attention of the Senate to the fact, that since the act of 1836, almost all banks north of Pennsylvania have brought themselves into the condition, in which their bills are excluded from the Land Office and the Custom House, by the provisions of this clause. These banks have issued notes less than five dollars. In some States there may be an exception or two—in New York, Massachusetts and Connecticut.—These are the only exceptions however, and the great mass of the banks in the Northern States are excluded. The same may be said of some of the banks in the Northwestern States, and in Maryland.

As to that provision of the section which prohibits the receipt of bills of all banks that do not redeem their notes in specie—it is a wholesome regulation. He would not disturb it. But the prohibition to select banks as public depositories, that have issued notes under five dollars, is one in which all the banks are involved. Now, it is generally acknowledged that the suspension of the prohibition of small notes was an important aid towards the resumption of specie-payments. The question therefore, is, how far shall this restriction on the Secretary be removed, so as to allow him to select specie paying banks as public depositories, at his discretion: and how far shall the prohibition on banks issuing small notes be suspended; or whether it shall be repealed altogether, or remain as it now stands.

The Bill which I have introduced (said Mr. W.) indicates my views of what is expedient and ought to be done. He then took the measure section by section, and gave a lucid and powerful explanation of each.

The first section suspends indefinitely the five dollar restriction of the Deposite Act.

Some might think (said Mr. W.) that the suspension ought to be indefinite, but it appeared reasonable that it should last as long as the suspension of the same restriction by the States. Some States were suspending, and some repealing this restriction—not for the benefit of the banks, but for the accommodation of the public. He would not, in this way, desire to place a limit to the suspension.

The second section provides that the Secretary of the Treasury should select as the public depositories any banking institutions, authorized by State Laws. This section was so worded as to embrace the institutions which might be created under the general banking law of the State of New York.

The third section as it stood, provided that the Secretary might employ banks, which had at any time, suspended specie payments. But as the Committee on Finance had reported that the Secretary had no power to exclude these banks, he should not retain that section. He proposed another section in place of this; providing that the Secretary may employ banks, which have, since July, 1836, paid out notes less than five dollars.

The fourth section suspends the provision of the Pension Act, which prohibits the disbursing officers of the government from paying out any note less than twenty dollars and any note not payable on demand in specie, at the place where issued.

In consequence of the provision, the Secretary thought himself authorized to prohibit the receipt at the Land Offices, the Post Office, and the Custom House, of every note less than twenty dollars. This is not of much importance, as respects the Custom House, but at the Land and Post Offices, its operation is attended with great inconvenience; he proposed to suspend the prohibition, and he was willing that it should be made definite.

Mr. Webster concluded with some sound and statesman-like general remarks. We are now, said he, approaching the close of the session. In order to carry out the joint resolution adopted some time ago, something must be done. The Sub Treasury Bill, which was to over-ride every thing and produce a change in the whole financial system, has failed. Neither the measure, which was presented by the Administration, for effecting a Sub-Treasury System, nor any other of that kind can be carried: and under this state of things, the Deposit Act will be the law of the land. He had pointed out the inconvenience and embarrassments which must result from that Act remaining in full force, without modification or amendment.

Mr. Webster said he considered it the bounden duty of the General Government to facilitate the measures adopted by the States, and the banks, to sustain the resumption of specie-payments. When Congress should meet again in December, this question of finance would be again before them. But the country expects that something shall be done forthwith. Congress is expected at least to give effect to the measure which they have already adopted—to restore the nation to the condition in which it was, when the Treasury Order of July, 1836, was passed.

The Bill has that object in view. It will facilitate the exertions of the State Legislatures, and of the Banks, in promoting and sustaining the resumption of specie-payments. It goes back to ancient customs, old forms, and established usages, and he earnestly besought the Senate to give it their serious consideration and cordial support.

As soon as Mr. Webster finished, Mr. Buchanan rose and moved to amend the Bill, by substituting his own (the Special Deposite System.) for it.—He went into an elaborate exposition of its character, and purposes, and finished by declaring that he introduced the measure on his own responsibility, that he had no concert with any other—though it was quite consonant with his feelings, as a sincere and ardent friend of the Administration.—He had been anxious that the Sub Treasury Bill should pass; yet because it has not passed, and cannot pass for two or three years, there was no reason on that account that Congress should do nothing.

Mr. Buchanan was followed by Mr. Strange, who avowed himself against any commitment to Mr. Buchanan's proposition or any other of a similar character, by the friends of the Administration, and thereupon came a speech entirely non-committal.—Were the field open he would say that Mr. Buchanan's measure, was inefficient and calculated to do little good! He had no idea that it would have been offered as a substitute for the measure of the Massachusetts Senator. He wanted time for reflection: and therefore moved to lay the whole substitute on the table. He declared, moreover, with great vehemence, he would not withdraw his motion at the instance of any man.

Mr. Buchanan replied to this rather sharply.—He did not wish the Senator to withdraw his motion, but would he call up the bill to-morrow?

Mr. Strange did not know whether he would call it up to-morrow, or next day.

Mr. Webster cried out across the desks to Buchanan—"Say you will call it up to-morrow, if he does not."

And Mr. Buchanan, acting on this suggestion, said he would.

The whole subject was then laid on the table—Nothing else of importance occurred.

The House was occupied during the greater part of the day, with the Army Bill. No decision yet.—It will probably be reported from the Committee of the Whole to-morrow.

Washington, June 28, 1838.

The Senate Chamber, to-day, was the scene of one of the most interesting and animating discussions that have ever taken place within its walls. The subjects were the new financial measures offered by Messrs. Webster and Buchanan.

The question being on the adoption of Mr. Buchanan's Bill as a substitute for Mr. Webster's, Mr. Calhoun rose, and declared his determination to vote against both propositions; and then against Buchanan's as a substitute, and against the original Bill. He preferred doing nothing to either. But compelled to choose between the two measures he would prefer that Mr. Webster's should pass. He trusted it on account of the quarter whence it came;—it was the responsible quarter. We, said he, have brought forward no scheme: mark the words, Mr. Editor. "We," "our," etc. had every disposition to make it generally acceptable, to do all we could to carry it, consistently with its principles. But after all our struggles, and after all our perseverance in advocating what we held to be in the true doctrines, we have been defeated—not overthrown, but fairly beaten, after free and full discussion.

This, continued Mr. C., changes the responsibility. We were responsible at first, but now responsibility is thrown on the opposition. Under the British system this would have produced a dissolution of Parliament, and an appeal to the People; or a resignation of their trusts by those to whom the administration of public affairs might be entrusted. But under our system, the case is different. The minority here is as responsible as the majority, &c. &c.

Mr. Buchanan made a very plausible return to this onset from his new ally. He defended his measure as calculated to limit Executive discretion, instead of enlarging it. He expressed his astonishment that Mr. Calhoun should prefer Mr. Webster's proposition to his; when his proposed to prevent the use of any banks as general depositories of the Government: whereas Mr. Webster's would bring back the State Bank Deposite Scheme. He more than insinuated that Calhoun was a little inconsistent in this matter.

Mr. Clay next rose, and in a strain of delightful badinage, commented on the differences just exhibited by two such good friends as the Senators from SOUTH CAROLINA and PENNSYLVANIA. He was sorry to witness their difference, and would be glad to see a reconciliation between two gentlemen who were such such supporters of the Administration.

Mr. C. then referred to the declaration by Messrs. Calhoun and Strange of their readiness to go before the country on that bill which had been so signally defeated by the people's representatives. He assured them, for himself and friends, that the satisfaction of the opponents of the measure would be equally great at going before the nation on that discussion. For the people have already given their verdict against the Sub-Treasury from one end of the Union to the other. But if the gentlemen are anxious for another appeal, let them have it! At the next session, you will find yourselves prostrated beyond a chance of recovery.

Mr. Clay alluded in a strain of great spirit and liveliness to the remark of Mr. Calhoun, that the responsibility rests now on the Whigs. What! said he, gentlemen, do you then acknowledge that you are defeated. Then give up your seats like men—resign your posts—go home—let us have the power along with the responsibility, and my word for it, we will, within sixty days, bring about a restoration of confidence and prosperity. But at the very moment in which we are told that we alone are responsible, the Senator from South Carolina also declares he will vote against us—and vote against his friends. Really, with such a set of perverse, obstinate, impracticable gentlemen, who will support nothing, let it come from friend or foe, we must be content to do the best we can. The great object should be to restore the confidence and prosperity of the country; and this he maintained was the purpose of the bill introduced by his friend from Massachusetts.

Mr. Clay then cursorily reviewed the most important provisions of that measure, and urged its adoption. He contrasted it with the substitute, and pronounced the latter to be a strange compound of distrust and confidence. You confide, said he, in the banks so far as to receive their notes, but in the very act of converting them into specie, there is an implied distrust. It is the want of confidence which has been so fatal to the prosperity of the country; and in keeping up that distrust the substitute would be most injurious.

If Mr. Webster's measure should fail, Mr. Clay said the responsibility would rest on those who were so obstinate and infatuated as to refuse any measure but that odious and pernicious one which had already brought to the Administration a Waterloo defeat—that bill which is now dead as any man that has been hanged on a gibbet—a measure caucused here in defiance of the expressed wishes of the constituents of Senators, and attempted to be forced through the House of Representatives in the face of the known will of the People.

Mr. Calhoun rejoined. He said that Mr. Clay charged him with being a partisan of the Administration. This he denied; and as usual, talked and argued some time about his consistency. It was not, (he declared,) in the power of Mr. Clay to give him his political position.

Mr. Calhoun then tried to cheer on his troops by a jubilant strain. They were not overthrown—not they—Mr. Clay he said was quite mistaken. The battle was not yet fought out. They had only had a slight skirmish—Clay would find when the fight should take place on the true issue between his bank, which he (John C. Calhoun of all men) living, styled a monarchical institution, and the Sub Treasury, that the latter would triumph. There would be two to one against it—Waterloo defeat—inglorious discomfiture, &c. &c. In this strain did Mr. Calhoun continue for half an hour.

Mr. Clay rejoined most felicitously. He said he certainly did not desire to locate the Senator from South Carolina. He would never aim at so impracticable an object. But he maintained that Mr. Calhoun's own language warranted every one in classing him with the friends of the Administration.

The Senator, said Mr. Clay, talks of belonging to no party. But have we not heard him repeatedly talking of making a rally—of the party of 1827—of the party of '98—Have we not heard him speak of uniting the whole South? Is he of that—the South uniting party?

Mr. Clay repelled the accusation that the Bank he proposed had anything of a monarchical character, but if it had, Calhoun's lips are shut against it, for he supported such a one twice. But it is quite chimeral to talk of the monarchical character of a National Institution. We had such a one for forty years, and our liberties were never in danger, until the power of the Executive was exercised to draw it to his footstool.

Mr. Clay concluded by declaring that although he was for a National Bank, he would not present a scheme for such institution, until he were assured the people were for it, and he assured Mr. Calhoun, that he would be found ever as ready to carry out the will of the people, as that Senator had shown himself zealous to obstruct it.

Mr. Calhoun made a brief rejoinder, of which the whole purpose was to attempt to hold up Mr. Clay as an enemy of the South: and to contrast his own course in organizing a Southern Party to procure a greater equalization of the burdens of Government, with that of Mr. Clay, who, he intimated, was looking to other quarters for support and popularity.

Mr. Clay indignantly repelled this insinuation. He looked to no section, said, for support. All the Government measures, in which he had any agency had reference to the prosperity of the Union, and the whole Union.

The distinguished orator then broke forth in a strain of the most impassioned eloquence, denouncing every attempt to unite the people of any section of the country in a community of interests separate from the people of the other sections. Any man who would set about such a work aided to produce the occurrence of the greatest misfortune which could possibly befall the American People. He may succeed in conciliating sectional favour—he may disclaim all ambitious views—he may trample under foot every imputation of his designs: but the tendency of such opinions and principles is directly to that catastrophe—a dissolution of the Union.

Mr. Calhoun now repeated those insinuations—for they had hardly the character of charges—in which he had indulged against Mr. Clay, during the Abolition debates of the last winter, of being less ardent in defence of the domestic institutions of the South than he ought to be.

Mr. Clay repelled the imputation; and declared with peculiar emphasis, that if the day should arrive, when an attack would be made upon the domestic institutions of the South, Mr. Calhoun never would be found in front of him, in resisting those attacks. But he believed that the course of that Senator itself, had done more to multiply Abolitionists, than all other causes combined.

He again urged in a lofty strain of eloquence the obligation to maintain the Union, and declared that the love of the Union, so deeply planted in the hearts of the American people, would crush every one opposed to it.

Mr. Strange then took the floor. His rising was a signal for a general retreat. After lecturing Mr. Calhoun about his anxiety not to be regarded as a friend of the Administration—of which he did not think any one ought to be ashamed—this very unimportant person made a long speech on the general subject: and moved as an amendment to strike out the provisions in Mr. Buchanan's Bill for the receipt of bank paper.

When he finished, Mr. Webster moved that the bill be laid aside till to-morrow: which was agreed to.

The Senate spent the remainder of the day in the consideration of private bills.

Washington, June 29, 1838.

The Senate rejected Mr. Buchanan's Bill, to-day, by a majority of eight. Thus, has another project for the establishment of a Sub Treasury failed, and it is to be hoped now that the country will be allowed to have some repose; and not be harassed immediately with more "untried expedients."

The debate was most instructive, and occasionally highly animated.

Mr. Webster made a most powerful speech in which he exposed the futility of Buchanan's proposition, and demonstrated the beneficial character of the Bill he had himself introduced. He urged with great force the propriety of the Senate confining its attention to what could be done at the present session. If his bill were passed it would confer great and immediate benefit on the country. But if it was rejected, and the substitute should be adopted by the Senate, we would be left where we now are: for there was no prospect of that measure being adopted by the House.

Mr. Buchanan replied at considerable length: and Mr. Webster rejoined.

Mr. Tallmadge made a very forcible speech against the Substitute. He was followed by Mr. Strange, of N.C. who presented a batch of amendments, all of which were successively voted down.

Then Mr. Niles took the floor and made a ridiculous speech intended to be witty. There was a great deal of laughter, but it was at him, not at any thing he said.

Mr. Rives spoke with remarkable spirit, and with his usual ability, against Buchanan's proposition, and in support of Mr. Webster's Bill. He declared it would be disrespectful to the House, after that body had so recently given a solemn decision against the Sub Treasury Bill, to send thither such a measure as this substitute.

Mr. Buchanan had the last words in defence of his bill. He declared he brought it forward under the highest obligations of duty to his country—his State—and to the Administration: and he believed that before the next session, the party with which he was connected would acknowledge that he was right in presenting it.

When he finished, the question was taken on the adoption of Mr. Buchanan's Bill as a substitute for Mr. Webster's which was carried by only two votes—Ayes 26, nays 24, as follows:

YEAS—Messrs. Allen, Benton, Brown, Buchanan, Clay of Alabama, Cuthbert, Fulton, Hubbard, King, Linn, Lumpkin, Lyon, Mouton, Nicholas, Niles, Pierce, Roane, Robinson, Sevier, Smith, of Connecticut, Strange, Trotter, Wall, Williams, Wright, Young.

NAYS—Messrs. Bayard, Calhoun, Clay of Ky., Clayton, Crittenden, Davis, Grundy, Knight, Mc Kean, Merrick, Norvell, Preston, Prentiss, Rives, Robbins, Ruggles, Smith, of Indiana, Southard, Spence, Swift, Tallmadge, Tipton, Webster, White.

The question then recurred on ordering the Substitute to be engrossed for a third reading: and was negatived, ayes 21, nays 29, as follows;

YEAS—Messrs. Brown, Buchanan, Clay, of Alabama, Cuthbert, Fulton, Hubbard, King, Lyon, Mouton, Nicholas, Niles, Pierce, Roane, Robinson, Sevier, Strange, Trotter, Wall, Williams, Wright, Young.

NAYS—Messrs. Allen, Bayard, Benton, Calhoun, Clay of Kentucky, Clayton, Crittenden, Davis, Grundy, Knight, Linn, Lumpkin, McKean, Merrick, Norvell, Prentiss, Preston, Rives, Robbins, Ruggles, Smith of Conn., Smith of Indiana, Southard, Spence, Swift, Tallmadge, Tipton, Webster, White.

Thus was the test question. Mr. Webster obtained three more votes for his measure than were given to Buchanan's.

Mr. Watson then gave notice that he would to-morrow, introduce a Bill, to modify certain clauses of the Deposite Act. The object is to suspend for a limited time, the Five Dollar Resolution.

The Senate immediately afterwards adjourned.

The morning business was unimportant.

In the House of Representatives, the Bill providing for an increase of the United States, was, after a long discussion, and at a late hour, Passed.