History of the United States of America, Volume 8 (of 9) : $b During the second administration of James MadisonAdams, Henry
History
History of the United States of America, Volume 8 (of 9) : $b During the second administration of James Madison
Adams, Henry
United States -- History -- 1801-1809; United States -- History -- 1809-1817
The House in committee adopted Calhoun’s amendment by a majority of
about sixty, in spite of Ingham’s opposition; and thus substituted for
Dallas’s scheme a large private bank, over which the government was
to exercise no control, with a capital of fifty millions, nine tenths
of which were to be Treasury notes. The House then discovered so many
unforeseen difficulties, that November 25 it recommitted the bill to a
select committee, of which Lowndes, Calhoun, Ingham, Forsyth, and two
Federalists were members.
Dallas was obliged openly to enter the lists against Calhoun, and
wrote to the committee a letter, dated November 27,[363] sounding like
a defiance: “The dividend on the funded debt has not been punctually
paid; a large amount of Treasury notes has already been dishonored;
and the hope of preventing further injury and reproach in transacting
business with the Treasury is too visionary to afford a moment’s
consolation.” Calhoun’s scheme, he plainly intimated, was impracticable
and mischievous.
The next day, November 28, Lowndes brought back Calhoun’s bill to
the House, together with Dallas’s letter, and told the House that
the committee could come to no agreement. Upon this admission of
helplessness, Hanson addressed the House in a speech which seemed to
carry Federalist exultation to the extremest point. Protesting his
anxiety to defend the country, Hanson uttered a cry of triumph over the
destruction of the government:--
“Not only had government bills been dishonored and the interest
of the public debt remained unpaid, but ... so completely
empty was the Treasury and destitute of credit, that funds
could not be obtained to defray the current ordinary expenses
of the different Departments. Disgraceful, humiliating as the
fact was, it ought not to be concealed from the nation, and he
felt it his duty to state to the House that the Department
of State was so bare of money as to be unable to pay even
its stationery bill. The government was subsisting upon the
drainings of unchartered banks in the District, which felt
themselves compelled to contribute their means lest the rod
_in terrorem_ which was held over them should be applied,
and an Act of incorporation refused.”
No one contradicted or answered Hanson. The House wavered in incapacity
that suggested dissolution. At last Richard M. Johnson, in order to
force a decision right or wrong, moved the previous question and
brought the House to a vote. Then the majority turned against Calhoun,
as they had before turned against Dallas, and rejected the bill by a
vote of one hundred and four to forty-nine.
Public-domain text, read in full here on John Shaqi.
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