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Mr. Ada and it was so far a debt that the gov-| by Gov. McNutt, which he wished to correct. It shall be taken and entered on the journals of each ernor says the people of that state would prefer a was stated that the ten and a half millions of bonds, house." war to paying it. He (Mr. A.) did not refer to any the sale of which he had prevented, were "autho "This wise provision of our constitution is pecutechnical or judicial questions whether the state of rized to be given by Gwin to the Union bank." This liar to our state; and, amidst the general pecuniary Mississippi was bound by that debt or not. The gen- was evidently a misprint of the letter, as no person embarrassments which now press so heavily upon tleman had said this was a private letter. Well, it of that name had an agency in such delivery. Mr. the energies of several of our sister states, arising from seemed that the representatives of the state have G. said the gentleman from Massachusetts (Mr. imprudent and very hasty legislation, and from an agreed with Governor McNutt in the opinion that Adams) expressed apprehensions of the appearance unadvised pawning of that brightest jewel of the the people of Mississippi would prefer a war to pay-of British ships in the waters of the Mississippi. state-her faith-for the purpose of raising money ing that debt. To this principle he (Mr. A.) would Was that gentleman always equally tenacious of to be used by the Few to the prejudice of the MANY, now come; and he would repeat that he would not keeping British ships out of these waters? If he was every Mississippian should feel grateful to the fraenter into the question whether or not the state of not mistaken in his historical recollection of the mers of our constitution for their prudence and foreMississippi had been defrauded by her own agents or country, that gentleman was expressly charged with cast in thus guarding our honor and our property, by agreeing to give Great Britain the free navigation of restraining from tampering with our faith or credit as the Mississippi during the negotiations at Ghent. An a state, a legislature whose course of conduct has adjourned question of veracity existed to this day evidently proceeded from impulse, rather than wise between the gentleman from Massachusetts and a and deliberate counsels. But it would be a mockepoint, that he would like to see settled before he put agents thus far shalt thou go and no farther,' and yet distingushed citizen of the west (Mr. Clay) on this ry of constitutional governments to say to their
[The letter referred to was here brought in and read by the clerk. It is dated November 10, 1841, addressed to the editor of the Richmond Enquirer, and is published in the Register, volume 61, page
QUIETLY SANCTION EVERY INFRACTION OF RESERVED
“At the January session of 1837, the legislature of our state passed an act entitled 'an act to incorporate the subscribers to the Mississippi Union bank,' in which you must mark the fact that no provlsion is made that the state of Mississippi shall be a subscriber for stock. But, on the contrary, section four of the law says that 'the owners of the real estate situated in the state of Mississippi, and who are citizens thereof, shall be the only persons entitled to subscribe.' This law provides that the capital of the bank shall be $15,000,000; that the books of subscription shall be kept open for six months, under the inspection of ten managers, to be chosen by the legislature; that, so soon as five thousand shares shall have been subscribed, the governor of the state shall appoint thirteen directors, to serve for twelve months, who shall take charge of the bank and the books of subscription; that, after the books are closed, the bank may go into immediate operation, whenever it shall appear that at least $500,000 shall have been subscribed and paid in; that those declared stockholders by the directors shall pay into the bank the sum of ten dollars upon each and every share subscribed; that the stockholders shall give their bonds to the bank for the amount of stock allowed to each, and shall also execute mortgages upon real estate, with the privilege of including one-fourth of the amount on slaves, to secure the payment of their stock bonds-(thus, not only the property mortgaged, but the whole estate of the stockholder would have been bound for the redemption of the stock;) bonds were to be paid by the bank as they severally and that both the principal and interest of the bank After some conversation on an attempt to post- shall pledge its faith for the redemption of the capifell due. Then it is further provided that the state pone the special order of the day, the house passed tal stock; or, in other words, shall become the sethereto. curity of the subscribers for stock, upon being alDebate resumed, Saturday Feb. 11. Government stock. The consideration of Mr. In-lowed ten per cent. of the profits of the bank, the reports against the issue of government stock being gersoll's motion to print 10.000 extra copies of the resumed.
much faith in the gentleman's present apprehensions The letter having been read, Mr. A. said he would on that subject. It was a subject of mortification leave it to the house to say whether or not he had to him (Mr. G.) to see the house of representatives misrepresented its contents. The letter itself pre-degraded by a warning from one of its members, supposed that a war would come upon this union, in that, in the event of a war with Great Britain, we consequence of the course of the state of Misssis- might be driven to the necessity of purchasing peace, sippi in refusing payment of those bonds, and the as China has recently done, by the payment of twengovernor said that four-fifths of the people of that ty-one millions of dollars. This nation, which has state would prefer to go to war rather than pay these with success and honor waged two wars with that bonds. Now suppose that the foresight of the go- gigantic power, is to be warned now in our full manvernor of Mississippi should prove true, and the fo- hood of the danger of being forced to purchase a reign governments of the individual subjects who dishonorable peace in the event of a collision behad suffered in their property by the trust and confi- tween the two nations. The suggestion was disdence which they had reposed in the people of that graceful to the nation, come from whatever source it state, should come and make a demand on the go- might. He (Mr. G.) was not disposed to occupy the vernment of this union? Suppose the president and time of the house in this discussion of the question the secretary of state should not choose to answer. that had arisen in Mississippi in relation to the bonds And suppose that one or more of the foreign govern- assumed for the Mississippi Union bank in the name ments whose citizens were thus injured, should send of the state, until the question had been forced upon their steamers up to Natchez, if they could get him as on the present occasion. That question apthere. Would the state rights and the state sove- peared to be so universally misunderstood, and in reignty principles of the state of Mississippi prevent most instances intentionally misrepresented, that he their calling upon you to assist them? They might would avail himself of this occasion to state the pobe invaded-martial law might be proclaimed. What sition assumed by the majority of the people of that were they to do? Was the state of Mississippi to state in refusing to recognise these bonds as a part of fight single-handed against the government of Great the debt of the state. Britain, or probably of half a dozen other European governments? He knew not. He thought, in such an event, that something would be heard of the obligation of this union to stand by its members in case of war, invasion, or martial law. What were we to do? Governor McNutt foresaw the event, and had declared what the people of Mississippi would do. They would prefer going to war. Would that pay their debts, or relieve them from their payment? The Speaker announced the expiration of the mornThose that went there with their Paixhan guns would not institute the inquiry whether the state of Mississippi was bound strictly by the acts of her agents or not. Another mode of reasoning would be applied in that case. And what would congress do? Would it see one of the states of this union conquered; in the bonds for which the people of that state were possession of an enemy; compelled to pay not only willing to go to war, but all the expenditures of that to the enemy? Twenty-one millions, possibly, as Mr. Gwin, of Mississippi, arose and continued his had just been exacted from China, in addition to six reply to Mr. Adams, and said that, at the expiration millions already before exacted! Where, he repeat- of the morning hour of yesterday, he was stating the ed, were we? Was this union prepared to submit grounds assumed by a majority of the people of Mistacitly to such a state of things? To say, "we can- sissippi, in refusing to acknowledge the bonds issued not interfere; this is a question between the sove- in the same state for the Mississippi Union bank as reign state of Mississippi and the foreign govern- the debt of the state. In order to a proper under
The question was simply whether the people should assume a debt contracted in violation of the constitution and laws of the state. The majority of the people take the ground that these bonds were assumed contrary to an express provision of the constitution, and sold in violation of that law, unconstitutional as it was, by the agents of the bank.
ments; we must be neutral." It might come to some standing of the question, it was necessary to give a
30th section requires the governor to execute to the appointment of five of the thirteen directors, and a standing accommodation loan of $200,000; and the said bank, from time to time, bonds in amount proportioned to the sums subscribed and secured to the satisfaction of the directors until the whole amount of bonds shall be furnished. In this charter you wili at once perceive no risk,no hazard of taxation whatever.
"This act was published-not the length of time required by the constitution, it is true; but still it was published; and it is unworthy of this great question to dwell on quibbles. At a succeeding legislature, which met in January, 1838, the same law came up for re-enactment. While it was still pending, and
before another vote was taken upon it, a joint comittee of the senate and house of representatives, a committee of the greatest weight and highest responsibility that can at any time be raised-was appointed, [The clerk then read from the letter of Mr. and instructed to examine whether the said bill can now advocated by the committee of ways and means Thompson, the clause in the constitution of the state be amended, and, if so, whether it be practicable to (both in the majority and minority reports) should of Mississippi. prohibiting the pledging the faith of change it into a state bank exclusively. From the continue to be the policy of this government. He the state except under certain restrictions. Also, a unanimous report of that committee, permit me to called on the house, on every member of it, on eve- history of the Mississippi Union bank; the passage draw your attention to the following extract: But ry citizen of this country, to look at this matter full of the charter; the passage of the unconstitutional as to that portion of the said charter which relates in the face, as he believed that they would have to supplement by authority of which the bonds were is to the subscribers or stockholders to the said insticonsider in what manner this union can come to the sued, and the sale of the bonds.] aid of the states, Upon every principle of morality, tution being the primary condition on which the of policy, of expediency, this government, this con- Mississippi bonds. Extract from Mr. Thompson's let faith of the state is to be pledged, and as such congress, was bound to take up the subject seriously, ter. The constitution provides that no law shall stitutes a vital part of it, we have no power to and see in what manner congress could come to the ever be passed to raise a loan of money upon the change the same, unless it should be again submitted aid of the states for the purpose of sustaining them credit of the state, or to pledge the faith of the state to the people for their sanction, which would have in the payment of their debts. Mr. A. having con- for the payment or redemption of any loan or debt, the tendency to postpone for at least two years its cluded, unless such law be proposed in the senate or house consummation. This course your committee believe Some explanations ensued between the speaker the members of each house, and entered on their stituents,' &c. of representatives, and be agreed to by a majority of would be directly at war with the wishes of our con
and Mr. Adams, in which the latter disclaimed any journals, with the yeas and nays taken thereon, and This report was received, and unanimously adoptimputation on the former-and then similar expla- be referred to the next succeeding legislature, and ed by the legislature. At that time, while the charnations between Mr. J. R. Ingersoll, one of the mem- published for three months previous to the next re- ter is still pending, and open of course to all amendbers of the committee, and Mr. Adams, who disgular election, in three newspapers of this state; and ments admissable under the constitution, it is the claimed any imputation on the committee. unless a majority of each branch of the legislature unanimous opinion that the vital pars of the bill Mr. Gwin said that there was an error in the print- so elected, after such publication, shall agree to and cannot be changed without a resub.nission of the ing of the letter which had just been read, written pass such law; and, in such case, the yeas and nays charter to the people; consequently the original
Mr. G. thought that Mr. Adams might be considered an index board by the British, pointing them to what some might think the most vulnerable portions of the union for the purpose of effecting the freedom of the negroes by means of war. Mr. G. thought too the bankrupt law, for which the gentleman had voted, was but wholesale repudiation system. Yet when Great Britain resorts to her potent argument, the paixhan gun, and parades her fleet before Boston to demand payment of English debts repudiated by the bankrupt law, why the gentleman requires Massachusetts to avoid war by all means by calling upon the general government to assume the debts. Mr. G. will not now express his views in opposition to the assump tion of state debt scheme. He (Mr. G.) has less dread of the Paishan guns than appears to operate on the gentleman from Massachusetts, and no such arguments shall force him into favor of the assumption
charter becomes a law on the 5th day of February, or on the 5th day of February, 1838, continues:- got in debt, the new doctrine of repudiation would 1838, without change or alteration. Without call- And whereas the said legislature last above mention- very soon relieve us. The gentleman from New ing in question the constitutionality of this charter, I ed passed an act entitled 'an act supplemental to an York (Mr. Granger) intended to be severe upon his might stop, and triumphantly ask, has a single bond act to incorporate the subscribers of the Mississippi (Mr. G's) colleague; but, like the blind rattlesnake of the state been issued and sold under this charter? Union bank, which was approved by the governor, in August, he sank his fangs into his own politically If so, who were the directors appointed by the go- February 5, 1838: and whereas the governor of the corrupt body. The only practical repudiation known vernor to manage the bank? Who were the subscri- state of Mississippi has, pursuant to the provisions of in this country during this century, of acknowledged bers for stock? Had the books of subscription been the said supplemental act, subscribed, in behalf of honest, and bona fide debts had no more zealous adkept open six months? How many stockholders had the said state, fifty thousand shares of the capital vocate than that gentlemen. None of us have for paid ten dollars upon each and every share subscrib- stock of said bank, and has executed twenty-five gotten the theatrical valedictory pronounced by hin ed? How many bonds for stock had been given and hundred bonds of the said state of Mississippi, for when this house was about passing an act to repeal secured by satisfactory mortgage? Not one of these the sum of two thousand dollars each,' &c. If truth the great repudiating bankrupt law; yet he has the things had been done at the time the bonds in question can produce conviction, surely this question is now audacity to get up, in the face of this house, and were issued and sold; and the purchaser must have placed beyond cavil. 4th. It is self-evident that the sneer at repudiation! It would be as apropos to hear known it. purchaser of the bonds had not only constructive but a prostitute lecture about virtue and morality. He "But here follows the explanation: ten days after actual notice that the faith of the state could not be said that this course of attack upon his state would the passage of the foregoing charter, the same legis- pledged under the constitution by an act of the legis- not be submitted to; and, if gentlemen travelled out lature that determined by unanimous vote that the lature without a confirmation by the people; that the of the usual course of debate to make such attacks, charter could not be amended while pending before supplemental act had not been confirmed by the peo- they must expect to be answered in a spirit becom them, passed 'an act supplementary to an act to in-ple; and that the bonds he purchased were issued, ing the representatives of a people who feared not the corporate the subscribers to the Mississippi Union pursuant to the provisions of the said supplemen- scoffs of the corrupt, or the frowns of power, in asbank;' wherein, under the magic title of supple-tary act;' because this power of attorney to the serting what they believed to be their great constitu ment,' they endeavored to do indirectly what the commissioners is made part and parcel of his con- tional rights. conscience of every member checked him in doing tract with them, and it contains a full statement of directly. They made changes in the charter, by Mr. G. contended that the extract read by the way of supplement, which but a few days before, they had declared, under oath, would vitiate the clerk from his colleague's letter was the basis upon whole instrument. This procedure was in violation which the canvass in Mississippi, in the election of of all parliamentary rule, known in this or any other 1841, was founded. The question was not "shall the enlightened country; and it can be considered in no bonds be paid?" but, "shall we assume them as the other light than a legislative fraud, because it violat-bonds of the state, and not provide for their payment ed not only the constitution, according to their own by taxes? or shall we assert the unconstitutionality showing, but also one of their express rules of order, under which they were issued and refuse to lay the which prohibited the repeal of any law the same tax, because it was not the debt of the state?" He session at which it was passed. On the 15th of Fe-stated the fact that not a dollar of the money for bruary, 1838, this act took the form and shape of which the bonds were sold had been received by the law. The very first section changed altogether the state; that the bonds were sold by agents of the bank, In the original appointed by authority of the unconstitutional supact, the state, being amply indemnified, agrees to plement-the money received by the bank and used stand as the security of the stockholders; in this sup- by it. Not a dollar ever went into the state treaplemental act she becomes primarily liable for five sury, or was under the control of a state officer; and million dollars. In the original act, no individual the archives of the state show no evidence of the but a citizen of the state can subscribe and take existence of any such obligation as due from the He further observed, that the state authoriMr. Granger proceeded to address the house. He stock; in this act, the state becomes a subscriber for state. stock, and, by express repeal, gives up her ten per ties had offered no obstruction to the bond-holders if said he had not sought the floor for the purpose of cent of the profits, her five directors, and her ac- they wished to seize the assets of the bank. In fact, replying to the very refined and polished remarks of commodation loan of two hundred thousand dollars they had publicly expressed a desire that this course the gentleman from Mississippi (Mr. Gwin) so far and becomes a partner in the banking adventure.—should be adopted. Mr. G. said he differred with as related to himself personally, but he had listened All this is done under the talismanic word 'supple- the statement of Governor McNutt as it regarded to the gentleman's argument, and to the paper read He thought if at the table, and he had a word to say about Missis ment,' without submitting it in any way to the peo- the worthlessness of these assets. ple! Now, it must be apparent to the commonest they were properly managed (as he had no doubt sippi morality as the gentleman would teach it.understanding, that it was not in the power of the they would be by the present board of assignees) He believed that the gentleman did not teach moralegislature to make the state a subscriber for stock in that there would be a large surplus, after paying the lity as the great mass of the people of that state that bank; to render her liable for the sum of five circulation, to be applied to the liquidation of those would teach it. What was the case as made out by million dollars, or any other amount; to change her bonds. In addition to these assets, there were also the gentleman himself? It was that the state of attitude in any respect towards the stockholders in the the mortgages of the stockholders for ten millions Mississippi had incorporated a bank with $15,000,bank; to enlarge or diminish her interest in the bank, as and a half of real estate-some of it the best in the 000 capital. It had then gone on. and declared by it stood at the passage of the original charter, with-state, and equal, in productiveness, to any on the an act of her legislature (which, if Mr. G. mistook out submitting it to the action of the people. This face of the globe-which the first legal men in the not, was passed by a legislature a majority of whom right had been expressly reserved to the people in state believed would be held liable at law for the were the political friends of gentleman, and who now held the same moral doctrines as were held by their fundamental law; and, until they had been con- payment of these bonds. He was no lawyer himself, sulted in the manner prescribed, all action by their and would not trust his own opinion; but the one he the gentleman) that the governor of the state-this supposed agents was null and void, and the whole now stated had the sanction of some of the ablest same Gov. McNutt-should subscribe for $5,000,000, were bound to take notice of it. These propositions are members of the bar in this country. No obstruc-being one-third of its capital stock. That stock was so self-evident no man of candor and discrimination tion had been thrown in the way of the bond hol- subscribed; the bonds were executed and signed by this very Governor McNutt, and put into market.will dispute them. The only question remaining is, ders who wished to proceed to foreclose these mort- The par value was received for them, and that condoes the present supposed liability arise under and by gages, and seize the assets proper of the bank, which, stituted the capital of the Union Bank of Mississippi. in the aggregate, exceeded fifteen millions of dol- That $5,000,000 was received and put into the bank, lars; and which, if the property mortgaged was held and he called on the gentleman to say whether or not liable, would more than pay the whole of the bonds, principal and interest. Thus those bonds, so much there was another stockholder to the amount of a sintalked of, were really more likely to be paid than gle dollar the bonds of those states which had paraded their resolutions against repudiation before the country.
attitude of the state to the bank.
virtue of the supplement?
Mr. Gwin replied that there was; and not only that, but that the stockholders had given their mortgages to the amount of ten millions and a half.
Mr. Granger. And they had been repudiated? Mr. Gwin. They were not repudiated; they never had been negotiated.
"It is apparent that it does so arise: 1st, from the very terms of the mortgages for stock which were drawn up by the officers of the bank, and which have been recorded in almost every county of the state; in which it is set forth that the intent of the mortgage is to secure the payment of only $10,500,000; leaving $5,000,000 (the sum already sold) to be Mr. G. said he could cite cases throughout the paid by the state, by virtue of the supplemental act. whole civilized world, of national debts, for which 2d. It is apparent from these facts, that, at the time value had been received, being repudiated, without of the issuance of the five millions of bonds now such nations being branded with dishonor; yet this held abroad, there were no subscribers for stock; that nation is pronounced dishonored because the state Mr. Granger. There had not been one dollar put the books of subscription had not been kept open of Mississippi refuses to acknowledge a debt never into the Union Bank of Mississippi but by the state's six months, as required by the original charter; that legally or constitutionally contracted by her, and bonds. Every dollar ever put into it-every bond no bonds for stock, and no mortgages to secure from which her people received no benefit. Sir, said ever issued, was the $5,000,000 bonds issued by Gothem, had been taken; that no directors had been Mr. G. this pretended horror of Mississippi repudia- vernor McNutt, and then when it had become inappointed by the executive to examine and pass tion is as hypocritical as it is insulting. The whole convenient to pay them, gentlemen found out that upon the validity of the mortgages; and that not band of stockholders, fund mongers, and paper mo- there was a flaw in the contract! Mr. G. came not a dollar had been paid in on a single share of ney robbers, in this country and Europe, and their here to speak with disrespect of any man who had stock. Therefore, they must have been issued in agents here, are bellowing about Mississippi repudi- been elevated to the chief magistracy of one of the pursuance of the supplemental act; or else there is ation, to draw public attention from their own infa- states of this confederacy, but let gentlemen, after more baseness in this whole transaction than ever mous system of swindling. Sir, said Mr. G. we the execution of these bonds, after the sale, delivery characterised any other act of public functionaries. have been taunted by these men, who live upon the and receipt of the $5,000,000, turn to the message 3d. It is apparent, from the very terms of the power labor of others, through the machinery of the bank- of Governor McNutt, and what did they find? That of attorney from the managers of the bank to the ing credit, and paper money systems, until even the he had yielded his individual opinions to the voices commissioners who went abroad to sell these bonds. Robespierre of the Harrison administration, who of the people of Mississippi! The bonds had been This power of attorney, after reciting that the act was as fond of cutting off heads officially as that issued; there was no pretence that the $5,000,000 to incorporate the subscribers to the Mississippi Un- monster was in reality, has attempted to cast ridicule had not been received; but when the pay day came ion bank had been passed by one legislature, and, in upon his (Mr. G's) colleague for wishing to cut the morality of Mississippi pocketed the $5,000,000, conformity to the constitution, had been published down the public expenditures to the receipts into and started back with holy horror at the idea of payand referred to the next succeeding legislature, the treasury. The gentleman from New York re- ing what they had received! which had passed and confirmed the said original minded his (Mr. G's) colleague (Mr. Thompson) that act; and that the same was approved by the govern-it was not at all necessary to retrench; for, if we
That was the condition of the Union Bank of Mis
sissippi; and as the gentleman professed to know
what should be the faith of Mississippi in relation to this transaction, there were, if he mistook not, a Jarge amount of bonds constituting the capital of the Planters' Bank of Mississippi. These bonds had not as yet been repudiated. He asked the gentleman to state in his place whether it was his own opinion that these bonds should or should not be paid?
Mr. Gwin said he was not only now, but always had been in favor of this payment, and it had been declared by a unanimous vote of the legislature of
Mr. Granger said he wanted the gentleman's own individual opinions, and was very glad to hear the opinions the gentleman had avowed. If he mistook not the signs of the times, it might soon be important to know individual opinions. He hoped the congress of the United States and the people of the United States and of Mississippi would remember, what he was proud to say the gentleman had said, that he was in favor of the payment of the bonds of the Planters' bank of Mississippi. He trusted he should never see the repudiation of the bonds of that bank, and that the gentleman would not be found with the party who might be at the polls within six months in favor
1835-36 been paid out among the states in that pro-
ported, or he would have corrected them at the time. The gentleman is reported to have said:
"He (Mr. Granger) came not here to speak with disrespect of any man who had bean elevated to the chief magistracy of one of the states of this confederacy; but let gentlemen, after the execution of these bonds, after the sale, delivery, and receipt of the $5,000,000, turn to the message of governor McNutt, and what did they find? That he had yielded his individual opinions to the voices of the people of Mississippi! The bonds had been issued; there was no pretence that the $5,000,000 had not been received; but when the pay day came the morality of Mississippi pocketed the $5,000,000, and started back with holy horror at the idea of paying what they had received!"
As to the statement
Mr. G. had regretted to hear the gentleman from Massachusetts say that a British steamer could go to Mississippi and conquer the city, (Natchez,) of which he had spoken. He differed from the gentleman en- Sir, (said Mr. Gwin, this statement is a tissue of tirely. Although he had never seen in the gentle- misrepresentation of fact, no doubt unintentional.man any thing like a British spirit-although he The expression attributed to governor McNutt was thought he would do justice to all nations, he had of- made in reference to signing the bank charter, and ten seen that the revolutionary blood in his veins and not to the sale of the bonds. in the veins of his sire, rose up, and on any question that there was no pretence that the five millions of of difference between us and Great Britain made him dollars had not been received, the gentleman is enwhat had been called "a pretty good hater." The tirely mistaken. It is not a fact; not a word of it; gentleman was the last man in the nation against for the main ground taken by the party in the state whom to bring the charge of being influenced by which is opposed to the payment of these bonds, is that British interests; but Mr. G. did not believe with him, the money was never received by the state, but by the Now, with reference to the Union Bank bonds. that all the steamers of the British navy could wend bank, for whose acts and debts the state is not liable He here declared-what the gentleman would not, their way up the valley of the Mississippi. No, Mis- as the act under which it is organized is unconstitu and could not contradict-that the law granting the power and directing the subscription of $5,000,000 sissppi alone, if they should have passed through tional and of no effect, so far as the liability of the stock to the Union bank of Mississippi was passed by Louisiana, was perfectly competent to protect her- state is concerned. As to have pocketed the five He had been a little millions, and starting back with horror when paya legislature a majority of whom were all the hard-self against British steamers. money men who read to the rest of the nation such surprised the other day, and he was more so now, day came, there is more poetry than truth in it. that there had not been some indignation expressed The state has always been willing to appropriate eloquent lessons on bank profligacy and corruption. on another occasion. The gentleman from Missis-every dollar of the assets of the bank to the payment This five millions of bonds had been subscibed for by sippi charged almost treason to his country on the of the bonds, except that portion which had been paid a hard-money governor, under a law passed by gentleman from Massachusetts for intimating that a to the bank by repudiation under the bankrupt law, hard-money legislature, andMr. Gwin said the gentleman appeared to under- British steamer might conquer the single state of and thus passed out of the control of the bank. He stand the political complexion of the legislature. South Carolina, (Mr. Holmes.) on the navy appropri- ror at thus destroying the means of the bank to pay Mississippi; and yet the eloquent gentleman from presumed the gentleman entertained no holy horWas he aware of the fact that the present whig se- ation bill the other day, had told them that British nator at the other end of the capitol was elected by steamers could go up the Mississippi and lay waste, the same legislature? not only her fair shores, but the shores of every other state bordering on that river; and still they had then heard, and they now heard, from the gentleman from Mississippi, no charge of British feeling against the gentieman from South Carolina. Any man who knew the gentleman from South Carolina, knew that he was the last man who would shrink from doing his duty with reference to Great Britain or any other country, and had the gentleman from Mississippi known his friend from Massachusetts, (if he would allow him to call him so,) he might have known that he would be the last to shrink from any thing the honor of his country or his personal honor required. In his remarks the other day, Mr. G. had certainly felt himself at liberty to say what had been said; he had felt it due to the character of this house, when they had unanimously passed a bill to sustain one arm of the defence of our country, and when the gentleman from Mississippi (Mr. Thompson) had got up, or endeavoured to get up a political excitement in moving the reconsideration of that bill, and had chosen to brag, if it could bring the credit of this country into disrepute, by declaring that money could hardly be raised on it, he had left it due to the house and to the nation to say what he had said.
Mr. Granger. How did that happen? After they had passed this law, the storm was a little thick about them, insomuch that they resigned, and left the whig senator to be elected. He understood the subject, and when the gentleman supposed that after getting up and making assertions. by applying coarse epithets to him, (Mr. Granger,) he got rid of the matter, he mistook his man. He (Mr. Granger) had nothing to say of the gentleman's epithets, but of his argument; for when in this hall any member, speaking to and of him, forgot what was due to and from a gentleman, it was not for him to remember that he was one. He stood by the argument. He meant no personal offence to the gentleman; he had stood here on a few figures, which he well understood when he had alluded to the case of Mississippi. Now, then, was the gentleman prepared to rise in this hall and say that the Union bank had ever issued a single dollar on any other funds than those received from the sale of this $5,000,000 of state bonds-that the state had ever raised by tax one dollar to account for the principal and interest of this $5,000,000 which she had received from her own bonds? He had nothing more to say on this subject than to declare that he stood here ready to verify every assertion he had made connected with this bank.
these bonds to the amount of one one or two millions
Mr. Granger, said he had been charged on this floor with having unjustly stated that the state of Mississippi, having received five milions of dollars for stock in the Union bank of Mississippi, had become a stockholder in that institution, and then repudiated or attempted to repudiate that debt. What he had stated was this, and he was ready to prove it; the documents were before him. He had stated, or intended to During the time that he had been in this hall, Mr. state, that under the laws of Mississippi the governor G. had endeavoured never make an unkind personal of the state had been authorized to sign $15,000,000 One word on the subject of state debts and of the remark; sure he was, he had never indulged in perso- of bonds for the Union bank; that he had been authorremarks which had fallen from the gentleman from nal expressions towards any man. He did not be-ized to subscribe $5,000,000 stock for the Union bank; Massachusetts, (Mr. Adams.) He did not agree with lieve the gentleman from Mississippi, in the very that he had so subscribed and had signed this $5,000,that gentleman in many of the positions he had as- harsh terms he had applied to him, (Mr. Granger,)| 000 of bonds; that this $5,000,000 of bonds sold for sumed; in one he concurred most fully with the gen- had intended to say any thing to wound his feelings. $5,000,000: that the money was put into the Union tleman from Mississippi; and when foreign stockhol- If this had been the case, the gentlman had missed bank, and became its capital. ders came here to say to him that they knew not that his mark; his arrow had fallen harmless to the ground. there was any difference between the stocks of the dif- Mr. Adams then proceeded. He wished simply to erent states of this union, and that they had been say, in reference to the remarks of the gentleman deceived in advancing their money, believing that from New York, (Mr. Granger,) that the gentleman the faith of the general government was pledged also, had misunderstood him if he had supposed for a mowith the gentleman from Mississippi (although the ment that he had said that he considered the British gentleman did not express it he presumed it was his government capable of sending her steamers up the idea) he would say to them, Why, then, is it that Mississippi and conquering the state of Mississippi. you bought Illinois bonds for 40 cents, others for 30, Mr. A. had said no such thing. He had put the supsome for 15, New York sixes for 90, and Massachu- position of this happening-of a British steamer gosetts sixes at par?" And when the foreign bondhol-ing to the state of Mississippi; and he had then inder who, per chance, had driven down the credit of the states here for the purpose of buying these bonds low, turned round to tell him that he considered them all pledged and guarantied by the faith of the United States government, he told them that their own action had foreclosed him from that plea.
quired whether the United States would leave the
After a few remarks from Mr. Gwin, in explana-
Mr. Gwin (Mr. G. yielding the floor) said that the Union bank of Mississippi had issued post-notes, which, from the date of their issuance, had been below par, and had sold her check on the bank of the United States, receivable in this irredeemable depreciated money. That was the way the bonds had been sold for par. They had been sold under par, if gold and silver constituted the standard, and on credit, which was a violation of the unconstitutional supplement under which the bonds were issued.
Mr. Granger would explain this matter. He had not assailed the conduct of the chief magistrate of that state, or intended any personal disrespect to him, but he had not made the assertions he had made without the proof before him.
What was the condition of the charter of the Union WEDNESDAY, FEB. 15. Mississippi and her debt.-bank? It had been created in January, 1838. This As connected with this whole subject, it was a By general consent Mr. Gwin rose to make an expla-supplemental act, which had been declared contrary pity, a grievous pity, (whatever gentlemen might nation. He said he asked the indulgence of the to good faith, but which was signed by governor Mcthink of it,) that the land bill of 1832 and 1833 had house a moment to enable him to reply to some state- Nutt. had been passed on the 8th of February of the not become a law. Had it become the law of the ments made by the gentleman from New York (Mr. same year. The gentleman from Mississippi (Mr. land-had distribution been made throughout the Granger) on Saturday last, as reported in the Intelli- Gwin) had told them the other day that these laws states of this union, to encourage them in the pay-gencer of yesterday morning. He would remark had been passed by an undivided whig vote, with the ment of their debts, and keep hope alive, so that they that, from the noise around him during the time the votes of a few of the "democrats." Mr. Granger unneed not have been driven, perhaps some of them, to gentleman was addressing the house, he had not heard derstood that there was no exception taken to the the necessity of repudiation; had the surplus funds of the gentleman make the statements as they are re-original charter, but to the supplemental act.
voted for the supplemental act, asked Mr. G.? They would find by reference to the records that it passed by a vote of fourteen whigs and thirty-six "democrats." He knew not how many whigs or how many "democrats" there were in the legislature of Mississippi; but he did know that of the fifty votes that passed the supplemental act, against a minority of something like thirty, fourteen only were whigs, and thirty-six were "democrats." Let the question, then, be settled as to who passed this infamous" supplemental law.
he had brought it in to present the facts of the case, goods, wares, and merchandise other than those of
Mr. Gwin said that letter was written before the bonds were issued.
Mr. Granger said that he still believed that governor McNutt, in his answers before the committee, had said that he prevented the further issue of these
What was next? Governor McNutt, on the spot, and well knowing every fact of the case, signed the law. What next? Goveruor McNutt, under that A long debate followed, consisting in a great mea"infamous" law, signed the $5,000,000 of bonds.Mr G. had not entered on this question with any sure of statistical facts and arguments, (not suscepti The money was received, and the avails of this $5, view to wound the feelings of any man here or else-ble of condensation,) of which the points only can at 000,000 of bonds went into the Union bank of Missis- where; or to assail any state of this union. Had Mis- present be given. sippi, and constituted its only capital. And how did sissippi, finding herself in the position in which states Mr. Kennedy, of Maryland, said at the last session they treat that institution? He would tell them how, were and individuals were had she, from the pres- of congress there had been sundry memorials refer They recognised it as a bank; the state transacted sure of the times, been forced to 'yield, and, declar-red to the committee on commerce asking an inquiry business with it as a bank; they declared by law that ing this debt her own, asked for further time for its into the question of our reciprocal commerce with the dividends received on that $5,000,000 of stock payment, then it would not have had, on this nation, foreign nations. After, this a resolution had been should go to the cause of internal improvements and the effect which it was now calculated to have abroad. passed in this house at his motion, directing the comof public education. On the 15th February, 1839, He had examined this question somewhat, and he had mittee on commerce to inquire into the subject and the state of Mississippi borrowed $75,000 of that bank; believed, and did now believe, that it was due to the report what effect our late revenue laws had produc on the 19th of February it borrowed $75,000 more, character of the nation that it should be understood. ed on our commerce with foreign countries; also, to and subsequently $25,000 more, to finish her public All he had declared was, that the state of Mississippi report on the past and present condition of our navibuildings. And before all these transactions, and through her constituted authorities, had chartered gation, and to recommend such measures as were neafter signing these bonds, and after the bonds had gone the Union Bank; that fifteen days after, it had passed cessary to enlarge our commercial marine. The ininto operation, the state of Mississippi, which had a supplemental act, (signed by governor McNutt;) quiry suggested in the memorials and in the resolusold city lots in Jackson, and taken promissory notes that, under that act, $5 000,000 had been received tion had been principally induced by the circumstance for them to the amount of $25,106. went to the in such currency as they had chosen to receive it in, (a very notable fact in reference to our condition) of Union bank of Mississippi, had them discounted as a and that that was the only capital stock the bank had the great increase of foreign shipping in our trade, commercial transaction, and put the money into her ever received. He had then gone on to declare that along with quite a remarkable increase of foreign treasury. Was he to be told, in the face of all these this bank-thus raised in corruption, as the gentle- seamen in our navy and our commercial marine. He facts, that the state of Mississippi had had nothing to man had told them, and in violation of the constitution did not know how it had escaped the attention of the do with that bank? and laws of Mississippi-had been recognised by the house as much as it seemed to have done, that this legislature of that state, which had become a borrow-question was one which had risen to a great deal of er of that institution. He had then declared that importance along the whole of our maritine states. governor McNutt, in his message as late as 1840, had Mr. K. alluded to the memorials on the subject, to said that, in this matter. he had yielded his indivi- the investigation given by the committee on comdual opinions to the voice of the state, but that he merce, and to its report, which had been deemed sufhad not then pretended to say that these bonds had ficiently important by the house to obtain a circulabeen unfairly negotiated; or, if he had these extracts tion of 10,000 copies and said it could hardly be said from his message had been unfairly quoted; and he that the question was unlooked for, or that the house would like to hear the gentleman state it, if this was had been taken by surprise on the subject. He had been a little surprised at the gentleman from South Carolina (Mr. Pickens) presenting it in that view to the house, as he felt assured it was of as much interest to the gentleman's section of the country as to any, and, in regard to importance, second to no question that could be brought to the consideration of
The gentleman had said that the bondholders could be paid from the assets of the bank. Let them see what those assets were, as presented by the gentleman's own witness and friend, governor McNutt.He held the statement in his hand. Let them see whether he had ever declared what he could not substantiate, that the $5,000,000 put into the bank from these bonds was the only capital the bank had
As late as January, 1840, governor McNutt, in his regular message, says "the faith of the state is pledged for the whole capital stock" of this bank, and the statement of the bank's affairs, as given by this same governor, in his message of January, 1841, is as follows:
Suspended debt in suit
$2,689,860 20 1,777,337 78 8,034,154 28 3,034,154 28 5,008,000 00 4,349 06 What a beautiful condition for bondholders, said Mr. G.
Resources, chiefly unavailable
Specie on hand
Mr. Gwin (Mr. G. yielding the floor) said there were ten and a half millions mortgaged, to which he had alluded when he had said that the assets would probably, pay the debt, if the property mortgaged
Mr. Granger. He would come to that. The gentleman had said, in reply to his question, there were $10,500,000 more. Now let them see what these $10,500,000 were; for this was to become a very interesting question in the history of this nation.
There were $10,500,000 more to be secured on bonds and mortgages, as the gentleman said, and he knew it was still an open question whether it should be paid. The gentleman would certainly agree with him that not one dollar had ever been paid. Governor McNutt, before the legislature of Mississippi, when urged by Mr. Turner to go on and issue these bonds, had entered his protest against them, and said he had to receive the odium of standing between the voice of the people of Mississippi and his view of constitutional right, but he would not issue these bonds.
not the case.
Mr. Gwin. He stated, in his message, that the
Mr. Granger. Governor McNutt signs these bonds
He had only contended that the $5,000,000 of bonds having been made in good faith, and the money for them received, should at least have been acknowledged in good faith.
The subject here passed over for this day.
HOUSE OF REPRESENTATIVES, THURSDAY, Feb. 16. On motion of Mr. John P. Kennedy, of Maryland, the house resolved itself into committee of the whole on the state of the union, (Mr. Tillinghast, of Rhode Island, in the chair,) and proceeded to the consideration of the following joint resolution "concerning the termination of certain reciprocity treaties:"
The report presented two subjects to the consideration of the house. The first, the effect of our commercial regulations on our colonial trade with the neighboring British colonies; and the second (and that to which the attention of the committee was more fully directed) the question of reciprocity treaties. The first, the colonial question, was one of very great magnitude-one which ought to have been brought to the consideration of the house at an earlier period, and one which he hoped, although it was almost hoping against hope, would yet be brought to the consideration of the house before the close of the present session.
The question for their consideration at the present time was that regarding reciprocity treaties, alluded to in the resolution before the committee. This reciprocity system, in the manner in which it was now presented. was of late invention in the diplomacy of the United States, and in its commercial relations with other countries a profoundly interesting question, because it had been professedly put forward as an experiment. Until 1815 we had not been ac quainted with this system of diplomacy, which was called the reciprocity system. Our commercial treaties with foreign nations had stipulated in general (and I had never gone beyond it) for the privilege of trade, so far as should be accorded in any instance to the most favored nations. The parties in alliance or compact had engaged with each other that whatever regulations of commerce with any country might be made in the course of their legislation, the rights and privileges of these regulations should instantly Be it resolved by the senate and house of representatives become permanent to the contracting parties of the of the United States of America in congress assembled, treaty. It would be seen on that basis that the leMr. Gwin (Mr. Granger yielding the floor) said That the president of the United States be, and he is gislation of the commerce of the country had always that letter was written by judge Turner, one of the hereby, requested, whenever he shall deem it com- been kept within the bounds which the legislation of judges of the supreme court of Mississippi; and he patible with the public interest, to make known to the country from time to time might prescribe. In had to state that the first time he ever saw or heard the governments of Denmark, Sweden, the Hansea- 1815 we had been presented to the world in a new of that letter, was in print, and he had received a let-tic republics, Prussia, Austria, and Russia, in con- attitude as regarded our commercial relations. The ter from judge Turner asking him if he recollected formity with the stipulations of the existing commer-wars which commenced with the French revolution any such letter or the conversation alluded to; and he cial treaties between said governments and the Unit- had ceased. We who, having been neutral, had been had replied that he neither recollected the letter nor ed States, the desire and intention of this govern- the carriers of the world, and had in this way enjoyany conversation alluded to on the subject. ment to terminate such commercial treaties now in force between said governments and the United States as have contracted to allow the parties thereto to import on equal terms, as regards duties on merchandise and tonnage, each into the ports of the other,
[Mr. Granger read from a letter of judge Turner, dated Nachez, March 23, 1838, in which Mr. Gwin's name was introduced in such a manner as to convey the idea that he was in favor of the issuing of these bonds.]
Mr. Granger continued. He assured the gentleman (and they were not words of ceremony) that he had not introduced the letter with any view to call up an unpleasant thought in the geutleman's mind;
ed an unexampled flow of prosperity, had found ourselves under the necessity of meeting those who had heretofore stood in the character of belligerents, as competitors, with us. It had then been proposed in this country that a relaxation of the old system of
Mr. McKeon followed (in reply) in some remarks, which he gave notice of his intention to publish. Mr. McK. yielded the floor several times, for purposes of explanation, to Mr. Kennedy, of Maryland.
discrimination should be made with all nations dis- ther act extending the principle a little further, as he posed to reciprocate with us, and in 1815 congress had shown. This had been the second advance in passed an act on this subject. this reciprocity system by the legislation of the Mr. K. read from this act, and said it was a tender, country. In May, 1828, another act had been passed on our purt, to the whole world to relax those dis-extending this reciprocal privilege in the carriage of Mr. Cushing said that they were now engaged in criminating duties on tonnage and merchandise im- other nations than our own, in conformity with the debating here, of all possible questions in the range ported in foreign vessels, exactly in the extent in treaties to which he had alluded. Thus it would be of government that could come before congress, the which they were willing to reciprocate such privile-seen that, by legislation, we had gradually advanced most complex, the most difficult, and ramifying most ges to us. It would be noted, however, as a most to the establishment of this system of reciprocity, extensively into collateral questions and relationsimportant point, that that reciprocal privilege was and, concurrent with that, we had gone on and a subject in which the industrial and commercial restrictly confined to the carriage of the products or formed treaties on the same basis. In regard to this lations of the country had the deepest interest, and manufactures of the respective nations. This act legislation, he had only to say, if the policy were a into which, from its requiring a careful attention to had been followed very soon by the convention of good one, it was manifestly much better to be estab- details, it was impossible to enter fully, in the liLondon-the conimercial treaty of July, 1815, be- lished by legislation than by treaties, which were mited time allowed for debate. It would at once be tween the United States and England, into which, irrepealable, however adverse to our interests. He seen that, in the question of commercial treaties, after some solicitation on our part, the principle of did not pause here to discuss the importance of some (commerce affecting all nations), the interests of all the act of 1815 had been introduced. [Mr. K. read limit to this treaty action, although the question was nations were interlinked together. The question from this treaty the stipulation, on the part of the worthy of the gravest consideration of congress. If whether they would modify existing commercial United States, that no higher or other duties should any one would look into the Brazilian treaty of 1828. treaties, involved the question of taxes, of duties, of be imposed on the importation into the United States he would find that there had been almost a code of tonnage duties, and in many cases of duties on merof any article the growth or manufacture of the Bri-laws introduced into it, regulating the navigating and chandise; and therefore it was not merely a diplo̟tish dominions in Europe, than was imposed on the shipping interests of this country for a series of matic question, but in its ulterior relations was a lemanufactures of any other country, and vice versa on years, and placing it entirely beyond the control of gislative question. Suppose the United States nethe part of England, &c.] Mr. K. referred to the congress. How far such treaties conformed to the gotiated a treaty with another government, either continuation of this treaty, by several renewals to spirit of our laws, to the original limitations on the conceding or getting favors, it became a ques1828, when it was again renewed on condition that treaty-making power, he could not say. He had on- tion with the other countries of the world with whom it should last indefinitely, subject to one year's notice ly to say that these treaties, said to be the law of the we were connected. It also touched immediately the to terminate it from either party. He also alluded land, presented a peculiarity in our government that question of the rights of man, for it went into the to the fact of the treaty of 1818 with Sweden, on the existed nowhere else. To what extent these trea- question of equality between all nations, of internaold principle of conferring and receiving the same ties might hereafter be carried no one could con- tional rights, and of neutral and belligerent rights. privileges as those of the most favored nations; to the ceive. We had some inkling of treaties that should In order to illustrate the view he took of this treaty, on the same principle, with Colombia, in 1825, fix on this country beyond the control of this coun- question in respect to the interests of the United to the treaty with France in 1822, which after conti- try, a regular system of tariff duties, which could Stetes, he asked the attention of the committee nuing in force for a few years, by its own conditions not be changed except by the consent of foreign to the history of the question more especially in had become the same, in operation, as the British countries. In illustration of the bad effects of this England. English legislation on this subject conreciprocity treaty, with slight exceptions; to the policy, Mr. K. referred to the treaty of 1828 be- sisted of two parts: first, those regulations derived agitation of the subject of free trade, and the partial tween Brazil and England, and said, although he from the colonial monopoly; foreign governments extension of the reciprocity system, by the parliament did not fear that it would be carried so far in this that have not colonies, and the United States espeof Great Britain in 1824 and 1825, and to the conse- country, we should be very cautious of any policy cially, being excluded from participation in trade quent extension of it in this country. which should enable the treaty-making power to with the British colonies. That was a distinct quesThese British treaties (Mr. K. proceeded to say) bind us down to terms which we could not change. tion. The second branch of English legislation on this carried the principle of reciprocity a little beyond What were the effects of this reciprocity system, subject, and that which more especially concerned the carrying the produce of the respective parties, as manifested in England? It had been originally the present inquiry, was the English navigation laws, and conferred the privilege of bringing in the vessels commenced in that country with a great distrust which involved the very principle contained in these of the respective countries from the ports of the one of its value, and it might be found by examination resolutions. It was stated in many books, but he to those of the other the products of other countries that it was now a question of great contest between proposed to cite from the celebrated discourse of the than their own, provided they were such as might be the different parties there, whether these treaties in earl of Liverpool upon this subject. Mr. C. read legally admitted from the respective ports of the two the main had not been exceedingly hurtful to the in- the following: nations contracting. Mr. K. alluded to the respec- terests of Great Britain. He had read some able tive treaties of Great Britain with the Hanse Towns, dissertations on the subject, which went to show, on with Prussia, Russia, Denmark, &c. in 1824 and 1825, the British side of the water, that her reciprocity and to the reciprocity treaties of this government, in treaties, except with the United States, had been imitation of this policy, with the same powers, and hurtful to Great Britain. If they had gained advansaid it was very easy to see that, as we had no such tages to their navigation and commercial interestsrestrictions in our navigation act as they had, we had that was, if they had superceded any portion of our opened the trade of the United States to the compe- shipping heretofore employed in the trade between tition of the shipping of those nations without re- the two countries-we had lost exactly what they striction or limitation as to any quarter of the world, had gained. or in reference to any kind of commodity produced He desired to invite the view of the committee in any part of the world. We had given to the Hanse principally to the operation of this system in our Towns, to Denmark, to Russia, to Prussia, the privi- trade with the Baltic States. The principal powers leges not only of bringing into our ports the produce with which we traded in that region of the world of their respective countries and of the countries con- were the Hanse Towns, Sweden, Netherlands, Rustiguous to them, but had enabled them to enter into sia, and Denmark. (He omitted to namie Prussia, competition with the shipping of the United States in because our imports from it were very small.) Now, any species of trade we could carry oa in the world. in looking at the trade between these five powers Since 1815 the enlargement of this principle in our and the United States since 1825, he undertook to treaties had introduced a very interesting question to say that the trade between these two portions of the the notice of the American people, and that regarded world had not increased in any degree worthy of the limitations which are to be set on the treaty-mak- observation, perhaps not at all. He had thrown toing power. The constitution provided that treaties gether some statistics on the subject, from which it made by the authority of this government were the appeared that our aggregate imports from these five supreme law of the land; they were even vested with powers, in 1825, were within a fraction of nine mil-basis of their naval power. This was the trade of a higher degree of authority as law than the ordina-lions of dollars, and our aggregate exports twelve ry legislation of the country, because being contracts, millions of dollars; and in 1840 that our aggregate presented to the country in an irrepealable form, we imports from these countries were nine million four were forced to submit to them, however adverse to hundred thousand dollars, and our exports eleven the interests of the country. Where was the bound-million five hundred thousand dollars; showing that ary of this treaty-making power, was a question the value of our trade with that whole circle was which would occupy a discussion not appropriate to not as great in 1840 as in 1825. [Mr. K. read simithe present occasion or time. Undoubtedly it was lar comparative statements of this trade with some intended (Mr. K. held) that it should apply to our of these individual powers.]
"The principle on which these laws of navigation are founded, and which is thus attacked, is no less consonant to justice than to true policy; in its utmost extent, it goes no further than to establish, as a rule, that the trade between Great Britain and all the countries of Europe shall be carried on only in ships either belonging to Great Britain or to those belonging to the country from which any article may be imported; and not to suffer Holland or any other power to derive any advantage from becoming the carriers in a commercial intercourse with other countries, in which they have no right to be concerned. Such was the rule generally adopted in the law which was first enacted for this purpose in the middle of the seventeenth century, during the usurpation of Cromwell. When this law was re-enacted at the restoration, some modifications or exceptions were made, which subsist to this day."
[Jenkinson's Discourse, Preface, page 17. "There was, however, another species of commerce, which demanded their attention, even more than either of the former, as it was not only a profitable branch of traffic in itself, but as it greatly tended to the security of the rest, by being the principal freightage, or the carrying trade, the subject of our present discourse. To understand their views in this respect, we must first take notice of the foundation on which their policy was built. They had succeeded to the Hanseatic traders in becoming the carriers of the world. Long possession had therefore furnished them with grert numbers of sailors and ships, and to these they added uncommon parsimony and industry, the natural endowments of their peoexternal regulations with other nations, and not to He had referred to the state of trade to these two ple. These made them contented with small profits, our internal, and much less to our municipal regula-quarters of the trading world in order that the and enabled them to carry the manufactures of each tions. house might see the value of the trade as distinct country even cheaper than the natives of it themMr. K. would pass over that, for the purpose of from the question of navigation. He read a state-selves. With such happy circumstances in their falooking into the history of the rise of this question. ment of the foreign and American shipping employ- vor, they were sure of making this branch of trade The old treaties, as they had seen, left the questioned in this trade, showing that the American had de- wholly and perpetually their own, if their negotiaof regulating commerce from time to time free to creased one-third during that time, and that the fo- tions and policy established two points. the legislation of the day; it was only stipulated by reign had greatly increased. them, that when a privilege was given on one side, Mr. K. was further proceeding, by reference to it should enure to the benefit of the contracting statistics, to show that the operation of these treapower. The power of legislation seemed to have ties since 1823 to the present time had been gradualbeen carefully guarded in our old treaties as one of ly to supplant the American navigation, not only in the greatest importance, with reference to this coun- the direct trade with those countries thus stipulattry, in its commercial relations. Since 1815 ouring, but with all the other parts of the world, and to commercial arrangements had been on two different point out the great disadvantages under which it lafootings: one, the acts of congress; the other, the bored, when his remarks were arrested by the extreaty regulations to which he had referred. We piration of the morning hour, and he resumed his had had this act of 1815; in 1824 we had passed ano
"The first was, that no nation should grant to its own natives any privileges in relation to freightage which the people of Holland should not equally enjoy, nor any exclusive right in favor of its own navigation.
"And as the consequences of war would otherwise frequently interrupt the course of this traffic, they labored to obtain, as their second point, that, whenever any other nation was engaged in war, they might then enjoy, as neuters, the right of protecting the property of its enemies.