Kitabı oku: «Thirty Years' View (Vol. II of 2)», sayfa 49

CHAPTER LXXIV.
RECHARTER OF THE DISTRICT BANKS: MR. BENTON'S SPEECH: EXTRACTS

Mr. Benton then proposed the following amendment:

"And be it further enacted, That each and every of said banks be, and they are hereby, expressly prohibited from issuing or paying out, under any pretence whatever, any bill, note, or other paper, designed or intended to be used and circulated as money, of a less denomination than five dollars, or of any denomination between five and ten dollars, after one year from the passage of this bill; or between ten and twenty dollars, after two years from the same time; and for any violation of the provisions of this section, or for issuing or paying out the notes of any bank in a state of suspension, its own inclusive, the offending bank shall incur all the penalties and forfeitures to be provided and directed by the first section of this act for the case of suspension or refusal to pay in specie; to be enforced in like manner as is directed by that section."

Mr. Benton. The design of the amendment is to suppress two great evils in our banking system: the evil of small notes, and that of banks combining to sustain each other in a state of suspension. Small notes are a curse in themselves to honest, respectable banks, and lead to their embarrassment, whether issued by themselves or others. They go into hands of laboring people, and become greatly diffused, and give rise to panics; and when a panic is raised it cannot be stopped among the holders of these small notes. Their multitudinous holders cannot go into the counting-room to examine assets, and ascertain an ultimate ability. They rush to the counter, and demand pay. They assemble in crowds, and spread alarm. When started, the alarm becomes contagious – makes a run upon all banks; and overturns the good as well as the bad. Small notes are a curse to all good banks. They are the cause of suspensions. When the Bank of England commenced operations, she issued no notes of a less denomination than one hundred pounds sterling; and when the notes were paid into the Bank, they were cancelled and destroyed. But in the course of one hundred and three years, she worked down from one hundred pound notes to one pound notes. And when did they commence reducing the amount of their notes? During the administration of Sir Robert Walpole. When the notes got down to one pound, specie was driven from circulation, and went to France and Holland, and a suspension of six and twenty years followed.

They are a curse to all good banks in another way: they banish gold and silver from the country: and when that is banished the foundation which supports the bank is removed: and the bank itself must come tumbling down. While there is gold and silver in the country – in common circulation – banks will be but little called upon for it: and if pressed can get assistance from their customers. But when it is banished the country, they alone are called upon, and get no help if hard run. All good banks should be against small notes on their own account.

These small notes are a curse to the public. They are the great source of counterfeiting. Look at any price current, and behold the catalogue of the counterfeits. They are almost all on the small denominations – under twenty dollars. And this counterfeiting, besides being a crime in itself, leads to crimes – to a general demoralization in passing them. Holders cannot afford to lose them: they cannot trace out the person from whom they got them. They gave value for them; and pass them to somebody – generally the most meritorious and least able to bear the loss – the day-laborer. Finally, they stop in somebody's hands – generally in the hands of a working man or woman.

Why are banks so fond of issuing these small notes? Why, in the first place, banks of high character are against them: it is only the predatory class that are for them: and, unfortunately, they are a numerous progeny. It is in vain they say they issue them for public accommodation. The public would be much better accommodated with silver dollars, gold dollars – with half, whole, double, and quarter eagles – whereof they would have enough if these predatory notes were suppressed. No! they are issued for profit – for dishonest profit – for the shameful and criminal purpose of getting something for nothing. It is for the wear and tear of these little pilfering messengers! for their loss in the hands of somebody! which loss is the banker's gain! the gain of a day's or a week's work from a poor man, or woman, for nothing. Shame on such a spirit, and criminal punishment on it besides. But although the gains are small individually, and in the petty larceny spirit, yet the aggregate is great; and enters into the regular calculation of profit in these paper money machines; and counts in the end. There is always a large per centum of these notes outstanding – never to come back. When, at the end of twenty-five years, Parliament repealed the privilege granted to the Bank of England to issue notes under five pounds, a large amount were outstanding; and though the repeal took place more than twenty years ago, yet every quarterly return of the Bank now shows that millions of these notes are still outstanding, which are lost or destroyed, and never will be presented. The Bank of England does not now issue any note under five pounds sterling: nor any other bank in England. The large banks repulsed the privilege for themselves, and got it denied to all the small class. To carry the iniquity of these pillaging little notes to the highest point, and to make them open swindlers, is to issue them at one place, redeemable at another. That is to double the cheat – to multiply the chance of losing the little plunderer by sending him abroad, and to get a chance of "shaving" him in if he does not go.

The statistics of crime in Great Britain show, that of all the counterfeiting of bank bills and paper securities in that kingdom, more is counterfeited on notes under five pounds than over and it is the same in this country. On whom does the loss of these counterfeit notes fall? On the poor and the ignorant – the laborer and the mechanic. Hence these banks inflict a double injury on the poorer classes; and of all the evils of the banking system, the most revolting is its imposing unequal burdens on that portion of the people the least able to bear them.

Mr. B. then instanced a case in point of an Insurance Company in St. Louis, which, in violation of law, assumed banking privileges, and circulated to a large extent the notes of a suspended bank. Up to Saturday night these notes were paid out from its counter, and the working man and mechanics of St. Louis were paid their week's wages in them. Well, when Monday morning came, the Insurance Company refused to receive one of them, and they fell at once to fifty cents on the dollar. Thus the laborer and the mechanic had three days of their labor annihilated, or had worked three days for the exclusive benefit of those who had swindled them; and all this by a bank having power to receive or refuse what paper they please, and when they please. And the Senate are now called upon to confer the same privilege upon the banks of this district.

Mr. B. said it was against the immutable principles of justice – in opposition to God's most holy canon, to make a thing of value to-day, which will be of none to-morrow. You might as well permit the dry goods merchant to call his yard measure three yards, or the grocer to call his quart three quarts, as to permit the banker to call his dollar three dollars. There is no difference in principle, though more subtle in the manner of doing it. Money is the standard of value, as the yard, and the gallon, and the pound weight, were the standards of measure.

When he proposed the amendment, he considered it a proper opportunity to bring before the people of the United States the great question, whether they should have an exclusive paper currency or not. He wished to call their attention to this war upon the currency of the constitution – a war unremitting and merciless – to establish in this country an exclusive paper currency. This war to subvert the gold and silver currency of the constitution, is waged by that party who vilify your branch mints, ridicule gold, ridicule silver, go for banks at all times and at all places; and go for a paper circulation down to notes of six and a quarter cents. He rejoiced that this question was presented in that body, on a platform so high that every American can see it – the question of a sound or depreciated currency. He was glad to see the advocates of banks, State and national, show their hand on this question.

To hear these paper-money advocates celebrate their idols – for they really seem to worship bank notes – and the smaller and meaner the better – one would be tempted to think that bank notes were the ancient and universal currency of the world, and that gold and silver were a modern invention – an innovation – an experiment – the device of some quack, who deserved no better answer than to be called humbug. To hear them discoursing of "sound banks," and "sound circulating medium," one would suppose that they considered gold and silver unsound, and subject to disease, rottenness, and death. But, why do they apply this phrase "sound" to banks and their currency? It is a phrase never applied to any thing which is not subject to unsoundness – to disease – to rottenness – to death. The very phrase brings up the idea of something subject to unsoundness; and that is true of banks of circulation and their currency: but it is not true of gold and silver: and the phrase is never applied to them. No one speaks of the gold or silver currency as being sound, and for the reason that no one ever heard of it as rotten.

Young merchants, and some old ones, think there is no living without banks – no transacting business without a paper money currency. Have these persons ever heard of Holland, where there are merchants dealing in tens of millions, and all of it in gold and silver? Have they ever heard of Liverpool and Manchester, where there was no bank of circulation, not even a branch of the Bank of England; and whose immense operations were carried on exclusively upon gold and the commercial bill of exchange? Have they ever heard of France, where the currency amounts to four hundred and fifty millions of dollars, and it all hard money? For, although the Bank of France has notes of one hundred and five hundred, and one thousand francs, they are not used as currency but as convenient bills of exchange, for remittance, or travelling. Have they ever heard of the armies, and merchants, and imperial courts of antiquity? Were the Roman armies paid with paper? did the merchant princes deal in paper? Was Nineveh and Babylon built on paper? Was Solomon's temple so built? And yet, according to these paper-money idolaters, we cannot pay a handful of militia without paper! cannot open a dry goods store in a shanty without paper! cannot build a house without paper! cannot build a village of log houses in the woods, or a street of shanties in a suburb, without a bank in their midst! This is real humbuggery; and for which the industrial classes – the whole working population, have to pay an enormous price. Does any one calculate the cost to the people of banking in our country? how many costly edifices have to be built? what an army of officers have to be maintained? what daily expenses have to be incurred? how many stockholders must get profits? in a word, what a vast sum a bank lays out before it begins to make its half yearly dividend of four or five per centum, leaving a surplus – all to come out of the productive classes of the people? And after that comes the losses by the wear and tear of small notes – by suspensions and breakings – by expansions and contractions – by making money scarce when they want to buy, and plenty when they want to sell. We talk of standing armies in Europe, living on the people: we have an army of bank officers here doing the same. We talk of European taxes; the banks tax us here as much as kings tax their subjects. And this district is crying out for banks. It has six, and wants them rechartered – Congress all the time spending more hard money among them than they can use. They had twelve banks: and what did they have to do? Send to Holland, where there is not a single bank of circulation, to borrow one million of dollars in gold, which they got at five per centum per annum; and then could not pay the interest. At the end of the third year the interest could not be paid; and Congress had to pay it to save the whole corporate effects of the city from being sold – sold to the Dutch, because the Dutch had no banks. And sold it would have been if Congress had not put up the money: for the distress warrant was out, and was to be levied in thirty days. Then what does this city want with banks of circulation? She has no use for them; but I only propose to make them a little safer by suppressing their small notes, and preventing them from dealing in the depreciated notes of suspended, or broken banks.

CHAPTER LXXV.
REVOLT IN CANADA: BORDER SYMPATHY: FIRMNESS OF MR. VAN BUREN: PUBLIC PEACE ENDANGERED – AND PRESERVED: – CASE OF MCLEOD

The revolt which took place in Canada in the winter of 1837-'8 led to consequences which tried the firmness of the administration, and also tried the action of our duplicate form of government in its relations with foreign powers. The revolt commenced imposingly, with a large show of disjointed forces, gaining advantages at the start; but was soon checked by the regular local troops. The French population, being the majority of the people, were chiefly its promoters, with some emigrants from the United States; and when defeated they took refuge on an island in the Niagara River on the British side, near the Canadian coast, and were collecting men and supplies from the United States to renew the contest. From the beginning an intense feeling in behalf of the insurgents manifested itself all along the United States border, upon a line of a thousand miles – from Vermont to Michigan. As soon as blood began to flow on the Canadian side, this feeling broke out into acts on the American side, and into organization for the assistance of the revolting party – the patriots, as they were called. Men assembled and enrolled, formed themselves into companies and battalions, appointed officers – even generals – issued proclamations – forced the public stores and supplied themselves with arms and ammunition: and were certainly assembling in sufficient numbers to have enabled the insurgents to make successful head against any British forces then in the provinces. The whole border line was in a state of excitement and commotion – many determined to cross over, and assist – many more willing to see the assistance given: the smaller part only discountenanced the proceeding and wished to preserve the relations which the laws of the country, and the duties of good neighborhood, required. To the Canadian authorities these movements on the American side were the cause of the deepest solicitude; and not without reason: for the numbers, the inflamed feeling, and the determined temper of these auxiliaries, presented a force impossible for the Canadian authorities to resist, if dashing upon them, and difficult for their own government to restrain. From the first demonstration, and without waiting for any request from the British minister at Washington (Mr. Fox), the President took the steps which showed his determination to have the laws of neutrality respected. A proclamation was immediately issued, admonishing and commanding all citizens to desist from such illegal proceedings, and threatening the guilty with the utmost penalties of the law. But the President knew full well that it was not a case in which a proclamation, and a threat, were to have efficacy; and he took care to add material means to his words. Instructions were issued to all the federal law officers along the border, the marshals and district attorneys, to be vigilant in making arrests: and many were made, and prosecutions instituted. He called upon the governors of the border States to aid in suppressing the illegal movement: which they did. And to these he added all the military and naval resources which could be collected. Major-general Scott was sent to the line, with every disposable regular soldier, and with authority to call on the governors of New York and Michigan for militia and volunteers: several steamboats were chartered on Lake Erie, placed under the command of naval officers, well manned with regular soldiers, and ordered to watch the lake.

The fidelity, and even sternness with which all these lawless expeditions from the United States, were repressed and rebuked by President Van Buren, were shown by him in his last communication to Congress on the subject; in which he said:

"Information has been given to me, derived from official and other sources, that many citizens of the United States have associated together to make hostile incursions from our territory into Canada, and to aid and abet insurrection there, in violation of the obligations and laws of the United States, and in open disregard of their own duties as citizens.

"The results of these criminal assaults upon the peace and order of a neighboring country have been, as was to be expected, fatally destructive to the misguided or deluded persons engaged in them, and highly injurious to those in whose behalf they are professed to have been undertaken. The authorities in Canada, from intelligence received of such intended movements among our citizens, have felt themselves obliged to take precautionary measures against them; have actually embodied the militia, and assumed an attitude to repel the invasion to which they believed the colonies were exposed from the United States. A state of feeling on both sides of the frontier has thus been produced, which called for prompt and vigorous interference. If an insurrection existed in Canada, the amicable dispositions of the United States towards Great Britain, as well as their duty to themselves, would lead them to maintain a strict neutrality, and to restrain their citizens from all violations of the laws which have been passed for its enforcement. But this government recognizes a still higher obligation to repress all attempts on the part of its citizens to disturb the peace of a country where order prevails, or has been re-established. Depredations by our citizens upon nations at peace with the United States, or combinations for committing them, have at all times been regarded by the American government and people with the greatest abhorrence. Military incursions by our citizens into countries so situated, and the commission of acts of violence on the members thereof, in order to effect a change in its government, or under any pretext whatever, have, from the commencement of our government, been held equally criminal on the part of those engaged in them, and as much deserving of punishment as would be the disturbance of the public peace by the perpetration of similar acts within our own territory."

By these energetic means, invasions from the American side were prevented; and in a contest with the British regulars and the local troops, the disjointed insurgents, though numerous, were overpowered – dispersed – subjected – or driven out of Canada. Mr. Van Buren had discharged the duties of neutrality most faithfully, not merely in obedience to treaties and the law of nations, but from a high conviction of what was right and proper in itself, and necessary to the well-being of his own country as well as that of a neighboring power. Interruption of friendly intercourse with Great Britain, would be an evil itself, even if limited to such interruption: but the peace of the United States might be endangered: and it was not to be tolerated that bands of disorderly citizens should bring on war. He had done all that the laws, and all that a sense of right and justice required – and successfully, to the repression of hostile movements – and to the satisfaction of the British authorities. Faithfully and ably seconded by his Secretary of State (Mr. Forsyth), and by his Attorney-general (Mr. Gilpin), he succeeded in preserving our neutral relations in the most trying circumstances to which they had ever been exposed, and at large cost of personal popularity to himself: for the sympathy of the border States resented his so earnest interference to prevent aid to the insurgents.

The whole affair was over, and happily, when a most unexpected occurrence revived the difficulty – gave it a new turn – and made the soil of the United States itself, the scene of invasion – of bloodshed – of conflagration – and of abduction. Some remnant of the dispersed insurgents had taken refuge on Navy Island, near the Canadian shore; and reinforced by some Americans, were making a stand there, and threatening a descent upon the British colonies. Their whole number has been ascertained to have been no more than some five hundred – but magnified by rumor at the time to as many thousands. A small steamboat from the American side, owned by a citizen of the United States, was in the habit of carrying men and supplies to this assemblage on the island. Her practices became known to the British military authorities, encamped with some thousand men at Chippewa, opposite the island; and it was determined to take her in the fact, and destroy her. It was then the last of December. A night expedition of boats was fitted out to attack this vessel, moored to the island; but not finding her there, the vessel was sought for in her own waters – found moored to the American shore; and there attacked and destroyed. The news of this outrage was immediately communicated to the President, and by him made known to Congress in a special message – accompanied by the evidence on which the information rested, and by a statement of the steps which the President had taken in consequence. The principal evidence was from the master of the boat – her name, the Caroline – and Schlosser, on the American shore, her home and harbor. After admitting that the boat had been employed in carrying men and supplies to the assemblage on Navy Island, his affidavit continues:

"That from this point the Caroline ran to Schlosser, arriving there at three o'clock in the afternoon; that, between this time and dark, the Caroline made two trips to Navy Island, landing as before. That, at about six o'clock in the evening, this deponent caused the said Caroline to be landed at Schlosser, and made fast with chains to the dock at that place. That the crew and officers of the Caroline numbered ten, and that, in the course of the evening, twenty-three individuals, all of whom were citizens of the United States, came on board of the Caroline, and requested this deponent and other officers of the boat to permit them to remain on board during the night, as they were unable to get lodgings at the tavern near by; these requests were acceded to, and the persons thus coming on board retired to rest, as did also all of the crew and officers of the Caroline, except such as were stationed to watch during the night. That, about midnight, this deponent was informed by one of the watch, that several boats filled with men, were making towards the Caroline from the river, and this deponent immediately gave the alarm; and before he was able to reach the deck, the Caroline was boarded by some 70 or 80 men, all of whom were armed. That they immediately commenced a warfare with muskets, swords, and cutlasses, upon the defenceless crew and passengers of the Caroline, under a fierce cry of G – d damn them, give them no quarter; kill every man: fire! fire! That the Caroline was abandoned without resistance, and the only effort made by either the crew or passengers seemed to be to escape slaughter. That this deponent narrowly escaped; having received several wounds, none of which, however, are of a serious character. That immediately after the Caroline fell into the hands of the armed force who boarded her, she was set on fire, cut loose from the dock, was towed into the current of the river, there abandoned, and soon after descended the Niagara Falls: that this deponent has made vigilant search after the individuals, thirty-three in number, who are known to have been on the Caroline at the time she was boarded, and twenty-one only are to be found, one of whom, to wit, Amos Durfee, of Buffalo, was found dead upon the dock, having received a shot from a musket, the ball of which penetrated the back part of the head, and came out at the forehead. James II. King, and Captain C. F. Harding, were seriously, though not mortally wounded. Several others received slight wounds. The twelve individuals who are missing, this deponent has no doubt, were either murdered upon the steamboat, or found a watery grave in the cataract of the falls. And this deponent further says, that immediately after the Caroline was got into the current of the stream and abandoned, as before stated, beacon lights were discovered upon the Canada shore, near Chippewa; and after sufficient time had elapsed to enable the boats to reach that shore, this deponent distinctly heard loud and vociferous cheering at that point. That this deponent has no doubt that the individuals who boarded the Caroline, were a part of the British forces now stationed at Chippewa."

Ample corroborative testimony confirmed this affidavit – for which, in fact, there was no necessity, as the officer in command of the boats made his official report to his superior (Col. McNab), to the same effect – who published it in general orders; and celebrated the event as an exploit. This report varied but little from the American in any respect, and made it worse in others. After stating that he did not find the Caroline at Navy Island, "as expected," he went in search of her, and found her at Grand Island, and moored to the shore. The report proceeds:

"I then assembled the boats off the point of the Island, and dropped quietly down upon the steamer; we were not discovered until within twenty yards of her, when the sentry upon the gangway hailed us, and asked for the countersign, which I told him we would give when we got on board; he then fired upon us, when we immediately boarded and found from twenty to thirty men upon her decks, who were easily overcome, and in two minutes she was in our possession. As the current was running strong, and our position close to the Falls of Niagara, I deemed it most prudent to burn the vessel; but previously to setting her on fire, we took the precaution to loose her from her moorings, and turn her out into the stream, to prevent the possibility of the destruction of anything like American property. In short, all those on board the steamer who did not resist, were quietly put on shore, as I thought it possible there might be some American citizens on board. Those who assailed us, were of course dealt with according to the usages of war.

"I beg to add, that we brought one prisoner away, a British subject, in consequence of his acknowledging that he had belonged to Duncombe's army, and was on board the steamer to join Mackenzie upon Navy Island. Lieutenant McCormack, of the Royal Navy, and two others were wounded, and I regret to add that five or six of the enemy were killed."

This is the official report of Captain Drew, and it adds the crimes of impressment and abduction to all the other enormities of that midnight crime. The man carried away as a British subject, and because he had belonged to the insurgent forces in Canada, could not (even if these allegations had been proved upon him), been delivered up under any demand upon our government: yet he was carried off by violence in the night.

This outrage on the Caroline, reversed the condition of the parties, and changed the tenor of their communications. It now became the part of the United States to complain, and to demand redress; and it was immediately done in a communication from Mr. Forsyth, the Secretary of State, to Mr. Fox, the British minister, at Washington. Under date of January 5th, 1838, the Secretary wrote to him:

"The destruction of the property, and assassination of citizens of the United States on the soil of New York, at the moment when, as is well known to you, the President was anxiously endeavoring to allay the excitement, and earnestly seeking to prevent any unfortunate occurrence on the frontier of Canada, has produced upon his mind the most painful emotions of surprise and regret. It will necessarily form the subject of a demand for redress upon her majesty's government. This communication is made to you under the expectation that, through your instrumentality, an early explanation may be obtained from the authorities of Upper Canada, of all the circumstances of the transaction; and that, by your advice to those authorities, such decisive precautions may be used as will render the perpetration of similar acts hereafter impossible. Not doubting the disposition of the government of Upper Canada to do its duty in punishing the aggressors and preventing future outrage, the President, notwithstanding, has deemed it necessary to order a sufficient force on the frontier to repel any attempt of a like character, and to make known to you that if it should occur, he cannot be answerable for the effects of the indignation of the neighboring people of the United States."

In communicating this event to Congress, Mr. Van Buren showed that he had already taken the steps which the peace and honor of the country required. The news of the outrage, spreading through the border States, inflamed the repressed feeling of the people to the highest degree, and formidable retaliatory expeditions were immediately contemplated. The President called all the resources of the frontier into instant requisition to repress these expeditions, and at the same time took measures to obtain redress from the British government. His message to the two Houses said: