Mr. B. next stated the manner of levying the bank tax at present in Great Britain, which he said was done with great facility and simplicity. It was a levy of a fixed sum on the average circulation of the year, which the bank was required to give in for taxation like any other property, and the amount collected by a distress warrant if not paid. This simple and obvious method of making the levy, had been adopted in 1815, and had been followed ever since. Before that time it was effected through the instrumentality of a stamp duty; a stamp being required for each note, but with the privilege of compounding for a gross sum. In 1815 the option of compounding was dropped: a gross amount was fixed by law as the tax upon every million of the circulation; and this change in the mode of collection has operated so beneficially that, though temporary at first, it has been made permanent. The amount fixed was at the rate of £3,500 for every million. This was for the circulation only: a separate, and much heavier tax was laid upon bills of exchange, to be collected by a stamp duty, without the privilege of composition. Mr. B. here read, from a recent history of the Bank of England, a brief account of the taxation of the circulation of that institution for the last fifty years from 1790 to the present time. It was at that time that her circulation began to be taxed, because at that time only did she begin to have a circulation which displaced the specie of the country. She then began to issue notes under ten pounds, having been first chartered with the privilege of issuing none less than one hundred pounds. It was a century—from 1694 to 1790-before she got down to £5, and afterwards to £2, and to £1; and from that time the specie basis was displaced, the currency convulsed, and the banks suspending and breaking. The government indemnified itself, in a small degree, for the mischiefs of the pestiferous currency which it had authorized; and the extract which he was about to read was the history of the taxation on the Bank of England notes which, commencing at the small composition of £12,000 per annum, now amounts to a large proportion of the near four millions of paid for stamp duties. In 1791, they paid a composition of £12,000 per annum, in lieu of all stamps, either on bill or notes. In 1799, on an increase of the stamp duty, their composition was advanced to £20,000; and an addition of £4,000 for notes issued under £5, raised the whole to £24,000. In 1804, an addition of not less than fifty per cent. was made to the stamp duty; but, although the Bank circulation of notes under £5 had increased from one and a half to four and a half millions, the whole composition was only raised from £24,000 to £32,000. In 1808, there was a further increase of thirty-three per cent. to the stamp duty, at which time the composition was raised from £32,000 to £42,000. In both these instances, the increase was not in proportion even to the was made for the increase in the amount of the increase of duty; and no allowance whatever bank circulation. It was not till the session of 1815, on a further increase of the stamp duty, that the new principle was established, and the Bank compelled to pay a composition in some proportion to the amount of their circulation. The composition is now fixed as follows: Upon the average circulation of the preceding year, the Bank is to pay at the rate of £3,500 per million, on their aggregate circulation, without their notes. The establishment of this principle, it is calculated, caused a saving to the public, in the years 1815 and 1816, of £70,000. By the neglect of this principle, which ought to mated the public to have been losers, and the have been adopted in 1799, Mr. Ricardo estiBank consequently gainers, of no less a sum than half a million." reference to the different classes and value of Mr. B. remarked briefly upon the equity of this tax, the simplicity of its levy since 1815, and its large product. He deemed it the proper model to be followed in the United States, unless we should go on the principle of copying all that was evil, and rejecting all that was good in the British paper system. We borrowed the banking system from the English, with all its foreign vices, and then added others of our own to it. England has suppressed the retain small notes down to a dollar, and thence pestilence of notes under £5 (near $25); we taxed all notes; and those under £5 she taxed to the fractional parts of a dollar. She has highest while she had them; we, on the contrary, tax none. The additional tax of £4,000 on the notes under £5 rested on the fair principle of taxing highest that which was most dollars which the paper system pays annually profitable to the owner, and most injurious to to the British Treasury. He read : "The Bank, till lately, has always been particularly favored in the composition which they the country. The small notes fell within that category, and therefore paid highest. Having thus shown that bank circulation was now taxed in Great Britain, and had been for fifty years, he proceeded to show that it had also been taxed in the United States. This was in the year 1813. In the month of August of that year, a stamp-act was passed, applicable to banks and to bankers, and taxing them in the three great branches of their business, to wit: the circulation, the discounts, and the bills of exchange. On the circulation, the tax commenced at one cent on a one dollar note, and rose gradually to fifty dollars on notes exceeding one thousand dollars; with the privilege of compounding for a gross sum in lieu of the duty. On the discounts, the tax began at five cents on notes discounted for one hundred dollars, and rose gradually to five dollars on notes of eight thousand dollars and upwards. On bills of exchange, it began at five cents on bills of fifty dollars, and rose to five dollars on those of eight thousand dollars and upwards. tition which he presented to Congress the year "That your memorialist has established a bank in the city of Philadelphia, upon the foundation of his own individual fortune and credit, and for his own exclusive emolument, and that he is willing most cheerfully to contribute, in common with his fellow-citizens throughout the United States, a full proportion of the taxes which have been imposed for the support of the national government, according to the profits but a construction has been given to the acts of his occupation and the value of his estate; of Congress laying duties on notes of banks, &c., from which great difficulties have occurred, and great inequalities daily produced to the disadvantage of his bank, that were not, it is confidently believed, within the contemplation of the legislature. And your memorialist having submitted these considerations to the wisdom of Congress, respectfully prays, that the act the Secretary of the Treasury to enter into a of Congress may be so amended as to permit composition for the stamp duty, in the case of private bankers, as well as in the case of corporations and companies, or so as to render the duty equal in its operations upon every denomination of bankers.' Such was the tax, continued Mr. B., which the moneyed interest, employed in banking, was required to pay in 1813, and which it continued to pay until 1817. In that year the banks were released from taxation, while taxes Mr. B. had read these passages from Mr. Giwere continued upon all the comforts and ne- rard's petition to Congress in 1814, first, for cessaries of life. Taxes are now continued the purpose of showing the readiness with upon articles of prime necessity-upon salt which a banker of the old school paid the taxes even—and the question will now go before the which the government imposed upon his busiSenate and country, whether the banking in-ness; and, next, to show the very considerable terest, which has now grown so rich and powerful—which monopolizes the money of the country-beards the government-makes distress or prosperity when it pleases the question is now come whether this interest shall continue to be exempt from tax, while every thing else has to pay. Mr. B. said he did not know how the banking interest of the present day would relish a proposition to make them contribute to the support of the government. He did not know how they would take it; but he did know how a banker of the old school-one who paid on sight, according to his promise, and never broke a promise to the holder of his notes-he did know how such a banker viewed the act of 1813; and he would exhibit his behavior to the Senate; he spoke of the late Stephen Girard of Philadelphia; and he would let him speak for himself by reading some passages from a pe amount of that tax, which on the circulation alone amounted to ten thousand dollars on the million. All this, with the additional tax on the discounts, and on the bills of exchange, Mr. Girard was entirely willing to pay, provided all paid alike. All he asked was equality of taxation, and that he might have the benefit of the same composition which was allowed to incorporated banks. This was a reasonable request, and was immediately granted by Congress. Mr. B. said revenue was one object of his bill: the regulation of the currency by the suppression of small notes and the consequent protection of the constitutional currency, was another: and for that purpose the tax was proposed to be heaviest on notes under twenty dollars, and to be augmented annually until it accomplished its object. CHAPTER XLIX. having commenced under that of President Jackson. Compensation in the case of the Enterprize had been refused; and the reason given for the distinction in the cases, was, that the two first happened during the time that slavery LIBERATION OF SLAVES BELONGING TO AMERI- existed in the British West India colonies—the CAN CITIZENS IN BRITISH COLONIAL PORTS. latter after its abolition there. All these were coasting voyages between one port of the United States and another, and involved practical questions of great interest to all the slave States. Mr. Calhoun brought the question before the Senate in a set of resolutions which he drew up for the occasion; and which were in these words: 66 Resolved, That a ship or a vessel on the high seas, in time of peace, engaged in a lawful voyage, is, according to the laws of nations, unwhich her flag belongs; as much so as if conder the exclusive jurisdiction of the State to voidable cause, into the port of a friendly power, she would, under the same laws, lose none of the rights appertaining to her on the high seas; but, on the contrary, she and her cargo and persons on board, with their propersonal relations, as established by the laws of the ty, and all the rights belonging to their perState to which they belong, would be placed under the protection which the laws of nations extend to the unfortunate under such circum stances. Up to this time, and within a period of ten years, three instances of this kind had occurred. First, that of the schooner Comet. This vessel sailed from the District of Columbia in the year 1830, destined for New Orleans, having, among other things, a number of slaves on board. Her papers were regular, and the voyage in all respects lawful. She was stranded on one of the false keys of the Bahama Islands, opposite to the coast of Florida, and almost in sight of our own shores. The persons on board, including the slaves, were taken by the wreck-stituting a part of its own domain. ers, against the remonstrance of the captain and "Resolved, That if such ship or vessel should the owners of the slaves, into Nassau, New be forced by stress of weather, or other unaProvidence-one of the Bahama Islands; where the slaves were forcibly seized and detained by the local authorities. The second was the case of the Encomium. She sailed from Charleston in 1834, destined to New Orleans, on a voyage lawful and regular, and was stranded near the same place, and with the same fate with the Comet. She was carried into Nassau, where the slaves were also seized and detained by the local authorities. The slaves belonged to the Messrs. Waddell of North Carolina, among the most respectable inhabitants of the State, and on their way to Louisiana with a view to a permanent settlement in that State. The third case was that of the Enterprize, sailing from the District of Columbia in 1835, destined for Charleston, South Carolina, on a lawful voyage, and with regular papers. She was forced unavoidably, by stress of weather, into Port Hamilton, Bermuda Island, where the slaves on board were forcibly seized and detained by the local authorities. The owners of the slaves, protesting in vain, at the time, and in every instance, against this seizure of their property, afterwards applied to their own government for redress; and after years of negotiation with Great Britain, redress was obtained in the two first cases the full value of the slaves being delivered to the United States, to be paid to the owners. This was accomplished during Mr. Van Buren's administration, the negotiation "Resolved, That the brig Enterprize, which was forced unavoidably by stress of weather into Port Hamilton, Bermuda Island, while on a lawful voyage on the high seas from one port ciples embraced in the foregoing resolutions; of the Union to another, comes within the prinand that the seizure and detention of the negroes on board by the local authority of the island, was an act in violation of the laws of to whom they belong." nations, and highly unjust to our own citizens It was in this latter case that Mr. Calhoun wished to obtain the judgment of the Senate, and the point he had to argue was, whether a municipal regulation of Great Britain could alter the law of nations? Under that law she made indemnity for the slaves liberated in the two first cases: under her own municipal law she denied it in the latter case. The distinction taken by the British minister was, that in the first cases, slavery existing in this British colony and recognized by law, the persons coming in with their slaves had a property in them which had been divested: in the latter case that slavery being no longer recognized in this colony, there was no property in them after their arrival; and consequently no rights divested. Mr. Calhoun admitted that would be the case if the entrance had been voluntary; but denied it where the entrance was forced; as in this case. His argument was: "I object not to the rule. If our citizens had no right to their slaves, at any time after they entered the British territory—that is, if the mere fact of entering extinguished all right to them (for that is the amount of the rule) they could, of course, have no claim on the British government, for the plain reason that the local authority, in seizing and detaining the negroes, seized and detained what, by supposition, did not belong to them. That is clear enough; but let us see the application: it is given in a few words. He says: Now the owners of the slaves on board the Enterprize never were lawfully in possession of those slaves within the British territory; assigning for reason, 'that before the Enterprize arrived at Bermuda, slavery had been abolished in the British empire-an assertion which I shall show, in a subsequent part of my remarks, to be erroneous. From that, and that alone, he comes to the conclusion, that the negroes on board the Enterprize had, by entering within the British jurisdiction, acquired rights which the local courts were bound to protect. Such certainly would have been the case if they had been brought in, or entered voluntarily. He who enters voluntarily the territory of another State, tacitly submits himself, with all his rights, to its laws, and is as much bound to submit to them as its citizens or subjects. No one denies that; but that is not the present case. They entered not voluntarily, but from necessity; and the very point at issue is, whether the British municipal laws could diveşt their owners of property in their slaves on entering British territory, in cases such as the Enterprize, when the vessel has been forced into their territory by necessity, through an act of Providence, to save the lives of those on board. We deny they can, and maintain the opposite ground:-that the law of nations in such cases interposes and protects the vessel and those on board, with their rights, against the municipal laws of the State, to which they have never submitted, and to which it would be cruel and inhuman, as well as unjust, to subject them. Such is clearly the point at issue between the two governments; and it is not less clear, that it is the very point assumed by the British negotiator in the controversy." This is fair reasoning upon the law of the case, and certainly left the law of nations in full force in favor of the American owners. The equity of the case was also fully stated, and the injury shown to be of a practical kind, which self-protection required the United States to prevent for the future. In this sense, Mr. Calhoun argued : "To us this is not a mere abstract question, nor one simply relating to the free use of the high seas. It comes nearer home. It is one of free and safe passage from one port to another of our Union; as much so to us, as a question touching the free and safe use of the channels between England and Ireland on the one side, and the opposite coast of the continent on the other, would be to Great Britain. To understand its deep importance to us, it must be borne in mind, that the island of Bermuda lies but a short distance off our coast, and that the channel between the Bahama islands and Florida is not less than two hundred miles in length, and on an average not more than fifty wide; and that through this long, narrow and difficult channel, the immense trade between our ports on the Gulf of Mexico and the Atlantic coast must pass, which, at no distant period, will constitute more than half of the trade of the Union. The principle set up by the British government, if carried out to its full extent, would do much to close this all-important channel, by rendering it too hazardous for use. She has only to give an indefinite extension to the principle applied to the case of the Enterprize, and the work would be done; and why has she not as good a right to apply it to a car50 of sugar or cotton, as to the slaves who pro duced it." The resolutions were referred to the com mittee on foreign relations, which reported them back with some slight alteration, not affecting or impairing their force; and in that form they were unanimously adopted by the Senate. Although there was no opposition to them, the importance of the occasion justified a record of the vote: and they were accordingly taken by yeas and nays-or rather, by yeas: for there were no nays. This was one of the occasions on which the mind loves to dwell, when, on a question purely sectional and Southern, and wholly in the interest of slave property, there was no division of sentiment in the American Senate. CHAPTER L. RESIGNATION OF SENATOR HUGH LAWSON the place; and considered the new system accredited with the public on receiving his answer that he would. That was all that he had to do with getting the appointment: he was elected unanimously by the General Assembly, with whom the appointment rested. That is about the way in which he received all his appointments, either from his State, or from the federal government-merely agreeing to take the office if it was offered to him; but not always agreeing to accept: often refusing-as in the case of a cabinet appointment offered him by President Jackson, his political and personal friend of forty years' standing. It was long before he would enter a political career, but finally consented to become senator in the Congress of the United States: always discharging the duties of an office, when accepted, with the chine in the hands of his duty; and with an integrity of purpose which left his name without spot or stain. It is beautiful to contemplate such a career; sad to see it set under a cloud in his advanced years. He became alienated from his old friends, both personally and politically-even from General Jackson; and eventually fell under the censure of his State, as above related-that State which, for more than forty years, had considered it a favor to itself that he should accept the highest offices in her THIS resignation took place under circumstances, not frequent, but sometimes occurring in the Senate that of receiving instructions from the General Assembly of his State, which either operate as a censure upon a senator, or require him to do something which either his conscience, or his honor forbids. Mr. White at this time-the session of 1839-40-received instructions from the General Assembly of his State which affected him in both ways-con-assiduity of a man who felt himself to be a mademning past conduct, and prescribing a future course which he could not follow. He had been democratic from his youth-came into the Senate-had grown aged-as such: but of late years had voted generally with the whigs on their leading measures, and classed politically with them in opposition to Mr. Van Buren. In these circumstances he received instructions to reverse his course of voting on these leading measures—naming them; and requiring him to support the administration of Mr. Van Buren. He consulted his self-respect, as well as obeyed gift. He resigned in January, and died in May a democratic principle; and sent in his resigna-—his death accelerated by the chagrin of his tion. It was the conclusion of a public life which disappointed its whole previous course. From his youth he had been a popular man, and that as the fair reward of conduct, without practising an art to obtain it, or even seeming to know that he was winning it. Bred a lawyer, and coming early to the bar, he was noted for a probity, modesty and gravity-with a learning, ability, assiduity and patience-which marked him for the judicial bench: and he was soon pla"I do not know, Mr. President, whether I ced upon it- that of the Superior Court. After-am entitled to the honor I am about to assume wards, when the judiciary of the State was re-in seconding the resolutions which have just modelled, he was placed on the bench of the Supreme Court. It was considered a favor to the public to get him to take the place. That is well known to the writer of this View, then a member of the General Assembly of Tennessee, and the author of the new modelled judiciary. applied to Judge White, who had at that time returned to the bar, to know if he would take He spirit; for he was a man of strong feelings, though of such measured and quiet deportment. His death was announced in the Senate by the senator who was his colleague at the time of his resignation-Mr. Alexander Anderson; and the motion for the usual honors to his memory was seconded by Senator Preston, who pronounced on the occasion a eulogium on the deceased as just as it was beautiful. been offered by the senator from Tennessee, in honor of his late distinguished colleague; and yet, sir, I am not aware that any one present is more entitled to this melancholy honor, if it belongs to long acquaintance, to sincere admiIf these ration, and to intimate intercourse. circumstances do not entitle me to speak, I am sure every senator will feel, in the emotions which swell his own bosom, an apology for my desire to relieve my own, by bearing testimony |