Page:The American Cyclopædia (1879) Volume III.djvu/591

CALHOUN 585 tional specie-paying bank, wholly under pri- vate control, and not obliged to lend the government anything. The capital of this bank was to consist of $5,000,000 of specie and $45,- 000,000 of new treasury notes, which it was pro- posed to get into circulation by making them convertible into bank stock. This project pre- vailed in the house by a large majority. But Dallas in a labored report denied that new treasury notes to any considerable amount could thus be disposed of. He dwelt also on the in- justice and political danger of a scheme which might enable those federal capitalists who had hitherto held back and refused to lend their money to the government to obtain, to the ex- clusion of the holders of the existing govern- ment stocks, the control of a national bank with a capital five times as large as the old bank which the administration party had refused to recharter. These considerations staggered a part of the democratic supporters of the bill, and the federalists, who had supported Cal- houn's scheme as against Dallas's, now join- ing with Mr. Dallas, Oalhoun's bill fell to the ground. Thereupon Dallas's scheme was re- newed in the senate, where a bill was speed- ily passed for a non-specie-paying bank on his plan. When this bill came before the house it was vehemently opposed by Calhoun, and was defeated by the casting vote of the speaker, Mr. Cheves. A compromise scheme was then adopted for a bank with $30,000,000 of capital, $5,000,000 in specie, $10,000,000 in stocks created since the war began, and $15,000,000 in new treasury notes. But the great points ot'Calhoun's scheme wore still preserved: the bank was not obliged to lend to the govern- ment, nor permitted to suspend specie pay- ments. The senate wished to substitute the main point of Dallas's plan by vesting a power in the president to authorize a suspension; but the house refused to agree to this, and the bill having quickly passed without any such pro- vision, it was vetoed by President Madison as inadequate to the emergency. The peace which soon followed, attended as it was by great importations of foreign goods, paying the double duties imposed during the war, relieved the immediate wants of the treasury. But both the government and the country were still subjected to great embarrassments by the unequal value and depreciated state of the currency, growing out of the continual suspen- sion of specie payments by the banks south and west of New England. To remedy this evil, the project of a United States bank, which all now agreed should be specie-paying, was re- vived in the 14th congress, resulting in the charter of the bank of the United States. The conduct of this project through the house was intrusted to Mr. Calhoun. He was chairman of the committee by which the bill was re- ported, and he asserted in after years that but for his efforts the bank would not have been chartered. He also supported the tariff of 1816, designed to give to the domestic manufactures which the commercial restrictions, the war, and double duties had called into existence, some safeguard against foreign competition. An- other topic aow first prominently introduced into congressional discussion was that of inter- nal improvements. The president, in his annual message, had suggested such roads and canals as could best be executed under the national author- ity "as objects of a wise and enlarged patriot- ism." He referred, indeed, to the objection of a want of express constitutional authority, but sug- gested that any obstacle from that source might easily be removed. This idea was taken up by Calhoun, and at the next session of congress he succeeded in carrying through the house, by a vote of 86 to 84, a bill appropriating a million and a half to be paid by the United States bank, also all dividends upon the seven millions of stock held by the government in that institution, as a fund for internal improve- ments ; each state to be entitled to a share in the expenditure proportioned to its representa- tion in congress, but to be authorized also to consent to the expenditure of its share in any other state. This bill passed the senate, 20 to 15, but was vetoed by the president, on the ground of want of constitutional power in congress to make such appropriations. This occurred just at the close of Madison's term of office (March, 1817), which also brought to a close Calhoun's very active six years' term of service in the house of representatives. Before the next congress met ho was called to take a place in President Monroe's cabinet as secre- tary of war. He now removed his family to Washington, and resided there permanently for the next seven years. In the first congress after Monroe's accession the house resolved, 90 to 75, that congress was empowered to ap- propriate money for the construction of post roads, military and other roads, and canals, and for the improvement of watercourses ; and the secretaries of war and the treasury were directed to report at the next session a list of internal improvements in progress, and a plan for appropriations to aid them. The friends of the resolutions looked up to Mr. Calhoun as their champion in the cabinet against Mr. Crawford, the secretary of the treasury, who denied any constitutional authority for such ap- propriations of the public money. Mr. Calhoun found the war department in a greatly disor- ganized condition, with some $50,000,000 of outstanding and unsettled accounts, and the greatest confusion in every branch of the ser- vice. He took means for the speedy settle- ment of these claims, and drew up a bill, which was passed, for reorganizing the staff of the army. Shortly after his appointment as secre- tary of war Gen. Jackson was appointed to the command of the southern department, and was sent to take the lead of the forces opera- ting against the Seminolo Indians. The orders under which he acted were drawn by Calhoun. Jackson interpreted these orders to give him discretionary authority to do as ho pleased;