Carolina, to betray still further and more strikingly the characteristics which belonged to him, said, that in consequence of his (Mr. C.'s) remarks this very day, all obligations towards him on the part of himself (Mr. Calhoun), of the State of South Carolina, and the whole South, were cancelled. And what right had the senator to get up and assume to speak of the whole South, or even of South Carolina herself? If he was not mistaken in his judgment of the political signs of the times, and if the information which came to him was to be relied on, a day would come, and that not very distant neither, when the senator would not dare to rise in his place and presume to speak as he had this day done, as the organ of the gallant people of the State he represented."
The concluding remark of Mr. Clay was founded on the belief, countenanced by many signs, that the State of South Carolina would not go with Mr. Calhoun in support of Mr. Van Buren; but he was mistaken. The State stood by her distinguished senator, and even gave her presidential vote for Mr. Van Buren at the ensuing election – being the first time she had voted in a presidential election since 1829. Mr. Grundy, and some other senators, put an end to this episodical and personal debate by turning the Senate to a vote on the bill before it.
CHAPTER XXIX.
INDEPENDENT TREASURY, OR, DIVORCE OF BANK AND STATE: PASSED IN THE SENATE: LOST IN THE HOUSE OF REPRESENTATIVES
This great measure consisted of two distinct parts: 1. The keeping of the public moneys: 2. The hard money currency in which they were to be paid. The two measures together completed the system of financial reform recommended by the President. The adoption of either of them singly would be a step – and a step going half the distance – towards establishing the whole system: and as it was well supposed that some of the democratic party would balk at the hard money payments, it was determined to propose the measures singly. With this view the committee reported a bill for the Independent Treasury – that is to say, for the keeping of the government moneys by its own officers – without designating the currency to be paid to them. But there was to be a loss either way; for unless the hard money payments were made a part of the act in the first instance, Mr. Calhoun and some of his friends could not vote for it. He therefore moved an amendment to that effect; and the hard money friends of the administration supporting his motion, although preferring that it had not been made, and some others voting for it as making the bill obnoxious to some other friends of the administration, it was carried; and became a part of the bill. At the last moment, and when the bill had been perfected as far as possible by its friends, and the final vote on its passage was ready to be taken, a motion was made to strike out that section – and carried – by the helping vote of some of the friends of the administration – as was well remarked by Mr. Calhoun. The vote was, for striking out – Messrs. Bayard, Buchanan, Clay of Kentucky, Clayton (Jno. M.), Crittenden, Cuthbert, Davis of Mississippi, Fulton, Grundy, Knight, McKean, Merrick, Morris, Nicholas, Prentiss, Preston, Rives, Robbins, Robinson, Ruggles, Sevier, Smith of Indiana, Southard, Spence, Swift, Talmadge, Tipton, Wall, White, Webster, Williams – 31. On the other hand only twenty-one senators voted for retaining the clause. They were – Messrs. Allen, of Ohio, Benton, Brown of North Carolina, Calhoun, Clay of Alabama, Hubbard of New Hampshire, King of Alabama, Linn of Missouri, Lumpkin of Georgia, Lyon of Michigan, Mouton of Louisiana, Niles, Norvell, Franklin Pierce, Roane of Virginia, Smith of Connecticut, Strange of North Carolina, Trotter of Mississippi, Robert J. Walker, Silas Wright, Young of Illinois – 21.
This section being struck from the bill, Mr. Calhoun could no longer vote for it; and gave his reasons, which justice to him requires to be preserved in his own words:
"On the motion of the senator from Georgia (Mr. Cuthbert), the 23d section, which provides for the collection of the dues of the government in specie, was struck out, with the aid of a few on this side, and the entire opposition to the divorce on the other. That section provided for the repeal of the joint resolution of 1816, which authorizes the receipt of bank notes as cash in the dues of the public. The effects of this will be, should the bill pass in its present shape, that the government will collect its revenue and make its disbursements exclusively in bank notes; as it did before the suspension took place in May last. Things will stand precisely as they did then, with but a single exception, that the public deposits will be made with the officers of the government instead of the banks, under the provision of the deposit act of 1836. Thus far is certain. All agree that such is the fact; and such the effect of the passage of this bill as it stands. Now, he intended to show conclusively, that the difference between depositing the public money with the public officers, or with the banks themselves, was merely nominal, as far as the operation and profits of the banks were concerned; that they would not make one cent less profit, or issue a single dollar less, if the deposits be kept by the officers of the government instead of themselves; and, of course, that the system would be equally subject to expansions and contractions, and equally exposed to catastrophes like the present, in the one, as the other, mode of keeping.
"But he had other and insuperable objections. In giving the bill originally his support, he was governed by a deep conviction that the total separation of the government and the banks was indispensable. He firmly believed that we had reached a point where the separation was absolutely necessary to save both government and banks. He was under a strong impression that the banking system had reached a point of decrepitude – that great and important changes were necessary to save it and prevent convulsions; and that the first step was a perpetual separation between them and the government. But there could be, in his opinion, no separation – no divorce – without collecting the public dues in the legal and constitutional currency of the country. Without that, all would prove a perfect delusion; as this bill would prove should it pass. We had no constitutional right to treat the notes of mere private corporations as cash; and if we did, nothing would be done.
"These views, and many others similar, he had openly expressed, in which the great body of the gentlemen around him had concurred. We stand openly pledged to them before the country and the world. We had fought the battle manfully and successfully. The cause was good, and having stood the first shock, nothing was necessary, but firmness; standing fast on our position to ensure victory – a great and glorious victory in a noble cause, which was calculated to effect a more important reformation in the condition of society than any in our time – he, for one, could not agree to terminate all those mighty efforts, at this and the extra session, by returning to a complete and perfect reunion with the banks in the worst and most dangerous form. He would not belie all that he had said and done, by voting for the bill as it now stood amended; and to terminate that which was so gloriously begun, in so miserable a farce. He could not but feel deeply disappointed in what he had reason to apprehend would be the result – to have all our efforts and labor thrown away, and the hopes of the country disappointed. All would be lost! No; he expressed himself too strongly. Be the vote what it may, the discussion would stand. Light had gone abroad. The public mind had been aroused, for the first time, and directed to this great subject. The intelligence of the country is every where busy in exploring its depths and intricacies, and would not cease to investigate till all its labyrinths were traced. The seed that has been sown will sprout and grow to maturity; the revolution that has been begun will go through, be our course what it may."
The vote was then taken on the passage of the bill, and it was carried – by the lean majority of two votes, which was only the difference of one voter. The affirmative vote was: Messrs. Allen, Benton, Brown, Clay of Alabama, Cuthbert, Fulton, Hubbard, King, Linn, Lumpkin, Lyon, Morris, Mouton, Niles, Norvell, Pierce, Roane, Robinson, Sevier, Smith of Connecticut, Strange, Trotter, Walker, Wall, Williams, Wright, Young – 27. The negatives were: Messrs. Bayard, Buchanan, Calhoun, Clay of Kentucky, Clayton, Crittenden, Davies, Grundy, Knight, McKean, Merrick, Nicholas, Prentiss, Preston, Rives, Robbins, Ruggles, Smith of Indiana, Southard, Spence, Swift, Talmadge, Tipton, Webster, Hugh L. White – 25.
The act having passed the Senate by this slender majority was sent to the House of Representatives; where it was lost by a majority of 14. This was a close vote in a house of 236 present; and the bill was only lost by several friends of the administration voting with the entire opposition. But a great point was gained. Full
