creating a National Bank, the legal currency of the na tion had been superseded by the depreciated paper of the State banks; the impracticability and the doubtful policy of an attempt to create a metallic currency; the failure of repeated attempts, by means of Treasury issues, and State banks, to restore an uniform circulation; and recommending a National Bank, as the best and perhaps the only adequate, "source of relief."

A Bank was then proposed with a capital of thirtyfive millions, nearly four times as large as that of the first bank, with power to augment it to fifty millions; payable one-fourth in specie, and three-fourths in funded debt; * to be wielded by a direction, one-fifth of whom, including its President, were to be appointed by the President of the United States, with a control over the branches, for a term of twenty-one years; and with an express reservation of a qualified power, under the authority of the Government to suspend specie payments!

After a strenuous and successful effort by the Federalists, to expunge the clause authorizing a suspension of specie payments; and to insert a clause, compelling them; and after their failure so to modify the bill, as to exclude the Government from all participation in its management, it passed Congress, and received the sanction of Madi

son.

The combination of the public debt with the specie capital in Hamilton's plan, was objected to by Madison, in his "Political Observations."

NOTE.

The Report of a Committee of the House of Representatives, April 13, 1819, states, as consequences of the want of a National Bank, that the local currency had depreciated from 10 to 25 per cent. that the Government had lost, from the disorders which intervened between the expiration of the old charter, and the creation of the new bank, forty-six millions of dollars; that previously, it had enjoyed a currency equal to that of any country in the world, and much better than that of any other of equal geographical extent; and that its domestic

exchanges had been rearly equalized throughout its whole extent. The withdrawal of a foreign capital of seven millions of dollars, was one of the causes of the distress which followed the expiration of the first bank charter. A nearly equal sum in specie was imported soon after the second bank was established Within nineteen years from 1811, one hundred and thirty-five State banks failed, having a total chartered capital of about twenty-five millions. Nor have repeated subsequent admonitions been wanting, of the dangers and evils of independent, uncontrolled, incorporated State Banks; since, exceeding in number, fourteen hundred.

CHAPTER LXV.

THE day on which the supplementary Bank bill passed the Senate, a resolution was adopted by it, requesting the President, "to cause a communication to be made to the National Assembly of France, respecting the late BENJAMIN FRANKLIN.”

This distinguished American died on the twentieth of April, seventeen hundred and ninety. On the annunciation of this event, that body resolved to wear mourning, as a testimonial of their respect for his memory; and ordered a letter of condolence to be addressed to Congress. The grateful office of paying a national tribute to one, whose career is full of interest and of instruction, was confided by the President to Hamilton.

The letter, to be signed by Washington, was in the following terms :*—“ Sir, I received with particular satisfaction, and took an early opportunity of imparting to Congress, the communication made by your letter of the twentieth of June last, in the name of the National Assembly of France. So peculiar and so signal an expression of the esteem of that respectable body, for a citizen of the United States, whose eminent and patriotic services are indelibly engraved on the minds of his countrymen, cannot fail to be appreciated by them, as it ought

* January, 27, 1791.

to be. On my part, I assure you, Sir, that I anı sensible of all its value.

"The circumstances which, under the patronage of a monarch, who has proved himself to be the friend of the people over whom he reigns, have promised the blessings of liberty to the French nation, could not have been uninteresting to the free citizens of the United States; especially, when they recollected the dispositions which were manifested by the individuals, as well as by the Government of that nation, towards their still recent exertions in support of their own rights.

"It is, with real pleasure, Sir, that I embrace the opportunity now afforded me of testifying, through you, to the National Assembly, the sincere, cordial and earnest wish I entertain, that their labors may speedily issue in the firm establishment of a Constitution, which, by wisely conciliating the indispensable principles of public order, with the enjoyment and exercise of the essential rights of man, shall perpetuate the freedom and happiness of the people of France.

"The impressions naturally produced by similarity of political sentiment, are justly to be regarded as causes of national sympathy, calculated to confirm the amicable ties which may otherwise subsist among nations. This reflection, independent of its more particular reference, must dispose every benevolent mind to unite in the wish, that a general diffusion of the true principles of liberty, assimilating as well as ameliorating the condition of mankind, and fostering the maxims of an ingenuous and virtuous policy, may tend to strengthen the fraternity of the human race, to assuage the jealousies and animosities of its various subdivisions, and to convince them more and more, that their true interests and felicity will best

be promoted by mutual good will, and universal harmony.

"The friendship to which you allude, in the close of your letter, has caused me to perceive with particular pleasure, that one, who had endeared himself to this country by his ardent zeal and useful efforts in the cause of liberty has, by the same titles, acquired the confidence and affection of his own. May it ever be his chief aim to continue to be beloved, as one of her most virtuous and most faithful citizens.

“I beg you, Sir, to accept my acknowledgments for the sentiments in your letter, which relate more particularly to myself; and, at the same time, to be assured of the most perfect consideration on my part."

One of the great objects of the institution of a National Bank is seen to have been the establishment of an uniform circulating medium upon a specie basis.

Previous to the Revolution, the very limited metallic currency of the Anglo-American colonies consisted, of the silver which passed thither from Mexico and the Southern part of this Continent through the West Indies; together with the returns for the non-enumerated commodities shipped to the foreign markets in the South of Europe; to which, from a jealous desire to secure a monopoly to the manufactures of Great Britain, the trade of her Colonies was restricted.

From the course of the direct commerce with England, they were largely indebted to her; and, instead of receiving coin from the parent nation, there was a continual drain of it. Hence, the amount of silver in circulation was much below the wants of the people of America; while gold (which prompted its discovery and settlement) was rarely seen.

* La Fayette.