222 CONGRESSIONAL PROCEEDINGS. 



September 8, 1841 Senate. 



Mr. GEORGE EVANS, from the Committee on Finance, reported, with 

 an amendment, the bill from the House to repeal the sixth section of 

 the act for the support of the Military Academy at West Point for 1838, 

 and to prohibit the investment of trust funds of the United States in 

 the stocks of the several States. 



The Senate proceeded to consider the same, and the bill was amended, 

 so as to strike out all after the enacting clause, and insert: 



That so much of the sixth section of the act to provide for the support of the Mil- 

 itary Academy of the United States for 1838 as requires the Secretary of the Treasury 

 to invest the annual interest accruing on the investment of the money arising from 

 the bequest of the late James Smithson, of London, in the stocks of the States, be, 

 and the same is hereby, repealed; and the Secretary of the Treasury shall invest said 

 accruing interest in any stock of the United States, bearing a rate of interest not less 

 than 5 per cent per annum. 



Mr. A. H. SEVIER made some observations in relation to the amend- 

 ment not distinctly heard in the gallery. 



Mr. EVANS remarked that the repeal affected that portion only of 

 the bill of 1838 which related to the investment of the funds of the 

 institution, and accruing interest in State stocks ; the investment to 

 be changed to United States stock. 



Mr. J. C. CALHOUN requested the bill and amendments would be 

 read. 



The bill was then read. 



Mr. CALHOUN wished to know what was to be done with the funds 

 when there was no United States stock to be had. If all authority to 

 invest them and the accruing interest in other stocks was repealed, and 

 there should be no United States stock in the market, or in existence, 

 what was to be done with the money? 



Mr. EVANS replied that all that had been taken into consideration in 

 committee, and it was the unanimous impression that there would be a 

 sufficient supply of United States stock in existence for the next three 

 years at least, and that no difficulty could arise in that way. If, how- 

 ever, any difficulty of that nature should arise, provision could be made 

 by Congress in time to meet it. 



Mr. ARCHIBALD L. LINN considered the whole thing as a direct 

 attack upon the credit of the States. Here was an act of Congress 

 implying on the very face of it a discredit of State stocks. Was not 

 this calculated to depress State stocks, both in the home and foreign 

 markets? 



Mr. EVANS observed that it was the standing of the State stocks in 

 those markets which had called for the amendment of the act of 1838. 



Mr. LINN called the attention of the Senate to this fact; that the 

 Democratic party, during the last political struggle of the party now 

 administering the Government to get into power, had been slandered, 



