under the conduct of the House itself, at the previous session, in refusing to consider a message from the President, and in refusing to intro duce a resolution to show the loss which was about to be sustained. At that time there was a part of this naval pension fund ($153,000) still on hand, but it was in stocks, greatly depreciated; and the President sent in a report from the Secretary of the Navy, that $50,000 was wanted for the half-yearly payments due the first of July; and, if not appropriated by Congress, the stocks must be sold for what they would bring. On this head, he said: "Towards the close of the last session of Congress, a message was transmitted by the President, covering a communication from the Secretary of the Navy, suggesting that an appropriation of $50,000 was necessary to meet the payment of pensions coming due on the 1st of July last. The message was sent on the 19th of June, and there was in it a letter from the Secretary of the Navy, stating that the sum of $50,000 was required to pay pensions coming due on the then 1st of July, and that it was found impracticable to effect a sale of the stocks belonging to the fund, even at considerable loss, in time to meet the payment. What did the House do with that message? It had no time to consider it; and then it was that he had offered his resolutions. But the House would not receive them-would not allow them to be read. The time of payment came and sacrifices of the stocks were made, which were absolutely indispensable so long as the House would not make the payment. And that $50,000 was one of the demonstrations and reductions from the expenditures of 1840, about which the President and the Secretary of the Treasury were congratulating themselves and the country. They called for the $50,000. They told the House that if that sum was not appropriated, it would be necessary to make great sacrifices. Yet the House refused to consider the subject at all. Those resolutions went utterly and entirely against the system of purchasing State bonds above par, and selling them fifty or sixty per cent. below par." These debates are instructive, as showing in what manner legislation can be carried on, under the silencing process of the previous question. Here was a bill, slipped through the House, without the knowledge of its vigilant members, by which a fund of one million two hundred thousand dollars was squandered at once, and a charge of about $100,000 per annum put upon the Treasury to supply the place of the squandered fund, to continue during the lives of the pensioners, so far as they were widows or invalids, and until twenty-one years of age, so far as they were children. And it is remarkable that no one took notice of the pregnant insinuation of Mr. Adams, equivalent to an affirmation, that, although he could not tell the whole story of the passage of the act of 1837, there were others in the House who could, if they would; and also could tell what private interests were provided for. No branch of the public service requires the reforming and retrenching hand of Congress more than the naval, now costing (ocean steam mail lines included) above eighteen millions of dollars to be precise-$18,586,547, and 41 cents; and exclusive of the coast survey, about $400,000 more; and exclusive of the naval pensions. The civil, diplomatic, and miscellaneous branch is frightful, now amounting to $17,255,929 and 59 cents: and the military, also, now counting $12,571,496 and 64 cents (not including the pensions). Both these branches cry aloud for retrenchment and re"He had desired a long time to say this much form; but not equally with the naval—which to the House; and he said it now, although a stands the least chance to receive it. The navy, little out of order, because he had never been being a maritime establishment, has been conallowed to say it in order. At the last ses- sidered a branch of service with which members sion the House would not hear him upon any from the interior were supposed to have but thing; and it was that consideration which induced him to offer the resolutions he had read, little acquaintance; and, consequently, but little and which gave something like a sample of right of interference. I have seen many eyes these things. He offered them after the very open wide, when a member from the interior message calling for $50,000 for this very object, had come in. But no, it was not in order, would presume to speak upon it. By conse and there was a gentleman here who cried out quence, it has fallen chiefly under the manageI object!" He (Mr. A.) was not heard by ment of members from the sea-coast-the tidethe House, but he had now been heard; and water districts of the Atlantic coast: where he hoped that when he should again offer these there is an interest in its growth, and also in resolutions, as he wished to do, they might at least be allowed to go on the journal as a record, its abuses. Seven navy yards (while Great to show that such propositions had been offered. Britain has but two); the constant building, 66 1 and equally constant repairing and altering vessels; their renewed equipment; the enlistment and discharge of crews; the schools and hospitals; the dry docks and wet docks; the congregation of officers ashore; and the ample pension list all these make an expenditure, perennial and enormous, and always increasing, 1 creates a powerful interest in favor of every proposition to spend money on the navy-especially in the north-east, where the bulk of the money goes; and an interest not confined to the members of Congress from those districts, but including a powerful lobby force, supplied with the arguments which deceive many, and the means which seduce more. While this management remains local, reform and retrenchment are not to be expected; nor could any member accomplish any thing without the support and countenance of an administration. Besides a local interest, potential on the subject, against reform, party spirit, or policy, opposes the same obstacle. The navy has been, and still is, to some degree, a party question—one party assuming to be its guardian and protector; and defending abuses to sustain that character. So far as this question goes to the degree, and kind of a navy-whether fleets to fight battles for the dominion of the seas, or cruisers to protect commerce-it is a fair question, on which parties may differ: but as to abuse and extravagance, there should be no difference. And yet what but abuse—what but headlong, wilful, and irresponsible extravagance, could carry up our naval expenditure to 18 millions of dollars, in time of peace, without a ship of the line afloat! and without vessels enough to perform current service, without hiring and purchasing! CHAPTER LXXIII. HOME SQUADRON, and aid to privaTE STEAM LINES. GREAT BRITAIN has a home squadron, and that results from her geographical structure as a cluster of islands, often invaded, more frequently threatened, and always liable to sudden descents upon some part of her coast, resulting from her proximity to continental Europe, and engaged as principal or ally in almost all the wars of that continent. A fleet for home purposes, to cruise continually along her coasts, and to watch the neighboring coasts of her often enemies, was, then, a necessity of her insular position. Not so with the United States. We are not an island, but a continent, geographically remote from Europe, and politically still more so-unconnected with the wars of Europe—having but few of our own; having but little cause to expect descents and invasions, and but little to fear from them, if they came. Piracy had disappeared from the West Indies twenty years before. We had then no need for a home squadron. But Great Britain had one; and therefore we must. That was the true reason, with the desire for a great navy, cherished by the party opposed to the democracy (no matter under what name), and now dominant in all the departments of the government, for the creation of a home squadron at this session. The Secretary of the Navy and the navy board recommended it: Mr. Thomas Butler King, from the Naval Committee of the House, reported a bill for it, elaborately recommended in a most ample report: the two Houses passed it: the President approved it: and thus, at this extra session, was fastened upon the country a supernumerary fleet of two frigates, two sloops, two schooners, and two armed steamers: for the annual subsistence and repairs of which, about nine hundred thousand dollars were appropriated. This was fifteen years ago; and the country has yet to hear of the first want, the first service, rendered by this domestic squadron. In the mean time, it furnishes comfortable pay and subsistence, and commodious living about home, to some considerable number of officers and men. But the ample report which was drawn up, and of which five thousand extra copies were printed, and the speeches delivered in its favor, were bound to produce reasons for this new precaution against the danger of invasion, now to be provided after threescore years of existence without it, and when we had grown too strong, and too well covered our maritime cities with fortresses, to dread the descent of any enemy. Reasons were necessary to be given, and were; in which the British example, of course, was omitted. But reasons were given (in addition to the main object of defence), as the gentleman from North Carolina as to the "Mr. WISE said that he agreed entirely with doctrine of specific appropriations; and if he supposed that this bill violated that salutary principle he should be willing to amend it. which the money was given. He did not see But it did not; it declared a specific object, for the necessity of going into all the items which made up the sum. That Congress had no power to ordain that a portion of the navy should be always retained upon the coast as a home squadron, was to him a new doctrine. The bill did not say that these vessels should never be sent any where else." that it would be a school for the instruction of making the appropriations in the bill speof the young midshipmen; and that it would cific." give employment to many junior officers then idle in the cities. With respect to the first of these reasons it was believed by some that the merchant service was the best school in which a naval officer was ever trained; and with respect to the idle officers, that the true remedy was not to create so many. The sum appropriated by the bill was in gross-so much for all the different objects named in the bill, without saying how much for each. This was objected to by Mr. McKay of North Carolina, as being contrary to democratic practice, which required specific appropriations; also as being a mere disguise for an increase of the navy; and further that it was not competent for Congress to limit the employment of a navy. He said: "Mr. MCKAY insisted on the ground he had taken, and went into a very handsome eulogy on the principle of specific appropriations of the public money, as giving to the people the only security they had for the proper and the economical use of their money; but this, by the present shape of the bill, they would entirely be deprived of. The bill might be modified with the utmost ease, but he should move no amend ments." Mr. Thomas Butler King, the reporter of the bill, entered largely into its support, and made some comparative statements to show that much money had been expended heretofore on the navy with very inadequate results in getting guns afloat, going as high as eight millions of dollars in a year and floating but five hun dred and fifty guns; and claimed an improvement now, as, for seven millions and a third they would float one thousand and seventy guns. Mr. King then said: "That the bill before the committee proposed to appropriate a gross sum to effect the object in view, which he deemed a departure from the wholesome rule heretofore observed in making appropriations. It was known to all that since the political revolution of 1800, which placed the democratic party in power, the doctrine had generally prevailed, that all our appropriations should be specific. Now he would suggest to the chairman whether it would not be better to pursue that course in the present instance. Here Mr. McKay enumerated the different items of expenditure to be provided for in the bill, and named the specific sum for each. This was the form, he said, in which all our naval appropriation bills had heretofore passed. He saw no reason for a departure from this wholesome "He had heard much about the abuse and practice in this instance-a practice which was the best and most effectual means of securing misapplication of moneys appropriated for the the accountability of our disbursing officers. navy, and he believed it all to be true. To There was another suggestion he would throw illustrate the truth of the charge, he would reout for the consideration of the chairman, and fer to the table already quoted, showing on one he thought it possessed some weight. This bill hand the appropriations made, and on the other In 1800 there purported to be for the establishment of a home the results thereby obtained. nor less than for the increase of the navy. with an appropriation of $7,011,055, we had squadron, but he looked upon it as nothing more had been an appropriation of $2,704,148, and we had then 876 guns afloat; while in 1836, Again, could Congress be asked to direct the manner in which this squadron, after it was fit- but 462 guns afloat. In 1841, with an approted out, should be employed? It was true that priation of a little over three millions, we had by the constitution, Congress alone was author-836 guns afloat; and in 1838, with an approized to build and fit out a navy, but the President was the commander-in-chief, and had alone the power to direct how and where it should be employed. The title of this bill, therefore, should be a bill to increase the navy,' for it would not be imperative on the President to employ this squadron on our coasts. Mr. M. said he did not rise to enter into a long discussion, but merely to suggest to the consideration of the chairman of the committee, the propriety priation of over eight millions, we had but 554 guns afloat. These facts were sufficient to show how enormous must have been the abuses some where." Mr. King also gave a statement of the French and British navies, and showed their great strength, in order to encourage our own buildwith ing of a great navy to be able to cope them on the ocean. He "Alluded to the change which had manifested itself in the naval policy of Great Britain, in regard to a substitution of steam power for ordinary ships of war. He stated the enumeration of the British fleet, in 1840, to be as follows: ships of the line, 105; vessels of a lower grade, in all, 403; and war steamers, 87. The number of steamers had since then been stated at 300. The French navy, in 1840, consisted of 23 ships of the line, 180 lesser vessels, and 36 steamers; besides which, there had been, at that time, eight more steamers on the stocks. These vessels could be propelled by steam across the Atlantic in twelve or fourteen days. What would be the condition of the lives and property of our people, if encountered by a force of this description, without a gun to defend themselves?" Lines of railroad, with their steam-cars, had not, at that time, taken such extension and multiplication as to be taken into the account for national defence. Now troops can come from the geographical centre of Missouri in about sixty hours (summoned by the electric telegraph in a few minutes), and arrive at almost any point on the Atlantic coast; and from all the intermediate States in a proportionately less time. The railroad, and the electric telegraph, have opened a new era in defensive war, and especially for the United States, superseding old ideas, and depriving invasion of all alarm. But the bill was passed-almost unanimously-only eight votes against it in the House; namely: Linn Boyd of Kentucky; Walter Coles of Virginia; John G. Floyd of New York; William O. Goode of Virginia; Cave Johnson, Abraham McClelland, and Hopkins L. Turney of Tennessee; and John Thompson Mason of Maryland. It passed the Senate without yeas and nays. A part of the report in favor of the home squadron was also a recommendation to extend assistance out of the public treasury to the establishment of private lines of ocean steamers, adapted to war purposes; and in conformity to it Mr. King moved this resolution: "Resolved, That the Secretary of the Navy is hereby directed to inquire into the expediency of aiding individuals or companies in our establishment of lines of armed steamers between some of our principal Northern and Southern ports, and to foreign ports; to advertise for proposals for the establishment of such lines as he may deem most important and ticable; and to report to this House at the next session of Congress." VOL. II.-18 prac This resolution was adopted, and laid the foundation for those annual enormous appropriations for private lines of ocean steamers which have subjected many members of Congress to such odious imputations, and which has taken, and is taking, so many millions of the public money to enable individuals to break down competition, and enrich themselves at the public expense. It was a measure worthy to go with the home squadron, and the worst of the two-each a useless waste of money; and each illustrating the difficulty, and almost total impossibility, of getting rid of bad measures when once passed, and an interest created for them. CHAPTER LXXIV. RECHARTER OF THE DISTRICT BANKS: MR. BENTON'S SPEECH: EXTRACTS. MR. BENTON then proposed the following amendment: every of said banks be, and they are hereby, "And be it further enacted, That each and 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 supension 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 They small notes. Their multitudinous holders can- notes? Why, in the first place, banks of high character are against them: it is only the predatory class that are for them: and, unfortu nately, 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 not go into the counting-room to examine 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 countryin 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 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 |