Removal of the Deposits.

After Congress adjourned, September 22, 1833, the President ordered Mr. Duane, the Secretary of the Treasury, to remove the public deposits from the United States Bank. He refused to do so, and was displaced by Mr. Taney, who did it. The order was that collectors should send no more money to the bank, but to authorized depositories, to be chosen amongst the State banks. There was no positive and sudden transfer of the amount in bank, but it was proposed to draw for it at the proper intervals.

The war was now in full blaze. The bank had circulated documents during the canvass of the previous year, showing its services and merits. Against this proceeding I see no valid objection. The documents were “ political,” because the question of the bank's existence had become political. It was justified in defending itself. But in August, 1833, it altered its policy. It rapidly contracted its loans, giving as a reason the necessity of providing for the transfer of the deposits, a reason which the facts did not warrant.

On the assembling of Congress, December, 1833, the message announced the step taken, giving as grounds the misconduct of the bank in attempting to control the election, and the unsoundness of the institution. The President also charged the bank with now creating an artificial stringency in order to make itself appear necessary to the community. The bank question occupied a great part of the session. Mr. Clay attacked the President for removing the Secretary. The Senate resolved (28 to 18) that the reasons for removing the deposits were unsatisfactory, and that the President had usurped unconstitutional power over the Treasury by removing the Secretary. The House never noticed the resolution, but resolved (134 to 82) that the bank ought not to be rechartered nor the deposits restored.