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FRIDAY, JUNE 80, 1818.
JVW 1160.
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It VJ f 7 MK fiQOsrYf
VDIKTED. WEEKLY, BT
A. EUOAS.
- Mr. M. said, he was not here when this
bank was incorporated; but he well remember
ed the argument by which it was sustained.
fcmrf Three dollars per yea , Tbe house Eld the nation' were told, that the
to oeptia-m advance. jso-pjMst v...vw
7 T. ' . . ...--
ttr thaif three month Wet a yer s .suiipiion oe-
v ...,: iv.,.f .,0 liv hrrn IP-fVen.
jStrtlsementt, 'not- exceeding' 14 -lines, are inserted.
ini.ee for one dMlarj ro twenty-five cent cacUjaub.
qient,inerion :. and t like rop.tio where there
i$, greater number lines than tbur.ee'. . 1 lie cash
nunl accompany, jhose fFon persi iis unknowrt Wthe
-editor " , '" '.. . ... (
fySa "S'.hstrtption can m any ce'-be rcceivea .witnout
pavmimt of at least gl 50 in rdvance.; and no d.scon-
-WUihu payment or, a:vtui uiwa l. w
tmuanc:
optioa of the editor.
bank would establish an uniform currency, and
break down the gyatom of brokerage, so justly
obnoxious. But, Mr. M. oa ice a, nas toe pre
dicted effect resulted, even in the ycry towns
wherein brv aches are established ? . No; and
can it result? Is it possible for the bank of
thtt United .Stales to equalize exchange between
thft different sectious of tho country ? Can'hey
equipoise the balance of trade between the At
lantic aod the western country, uutil the couft-trv-
manufactures every thing . itself? The
CONG R ESSIQ NT Ali.;; -1 '
" r""""" . ' ' 'j ; . .
-v-' : n ...... ... ...
noM THiei katiowal rwTfeLti&Eiroirav
liKKATR ovthk bams:, t
HOUSE OF llBPESENT,A:Wf4K''..?
.''v". -iersjai5;
The bill from the Serial anleifrtar
the acf ineorporating tbe Bank f JlniMd
Srates, (authorising the appointm-if jfra Vice
President, &e) having been real, and the
uestiou stated on ordenug ihesarn to-be read
a tbird time -
M'f.ToiNOEXTEn. of Misissippr sai
this M as a late period ol the scssiot,
no time for a discussion of the bill!
absolute necessity coud be all'eqedpr its pas
sage, he tiiafed that the same bo vt'lefinttely
postponed, "j . f
Mr. Mehcer, of Virginia, adiressed the
p.hnir. inCiinosUion to tne bill. It object,- he
7 if
affording
and as no
said, was i-o extend the operations if . the oank
& its branches whtre ah-ady esfabpbed, and
to enable the bank to establish Uraijthes where
they 'do not nov exist : and, could e suppose, tale,
ml
hope is illusory. "The .bank, he said, did not
even attempt to equalize the exchange between
this city and Philadelphia, although the mail
passes from the one t) tbe other at the rate
ofn hundred miles per day. If the attempt
has ever iteen made, it k cat from-a consul
ttfio&of ihrtaPlwVritaSf the couatry, hI
fsftiii rciri r!'j!"rl to" (Se individuals who
wet io he' aeeoiitniiufaled. . . r
It was true, Mr. M. said, thai, if the trea
sury, persisted in the- arrangement relative to
the paper rterVable'nt its collectors' and re
ceivers" offices, it becomes important that the
paper of the bank of the U. States Bank should
have a gent-raliireulalion. He was willing for
one, however, to give hia i assent to a bill which
'should restrain such oppression, and compel
the Treasury to receive the paper of all banks
which j;ay 'specie, instead of giving such a pre
ference to the B;ink of the United States be
yond the requirement of the law. as fo make
uectssary the proposed extension of its privi
leees. Ve hare- ei venr said he, to this iiio-
nied interest, a body to act, a
incorporation T Mr. M. knew very well, he-alHbose cities, oud willsooo be at pari From
tbat uch an mstitotton may buy half this view, it ia evident, that the bank has ef
fected te object re'atijre to the exchanges
which had been contemplated by. its friends,
and this good has .been effected without any
matejriai injary to an fit the state banks It
is true, the bank -operates as a check to those,
institutions. They are now under the neces-r
sity of curtailing their, operations, and doing
only as much business as their1 capital and
deposits will Jastify. Those banks which ar
sound, and, discreetly managed, will probably
divide, Wfuture, 8 per cent. They can ho
longer inhndate the country with paper.
tbti legal talents of the country, and obtain au
thority fof very ingenious constructions of
a plain provision. But, said he, we have the
power to .restrain avarice, .and defeat tngena
ity, and I look' to that source for some con
solation. He concluded by saying he trusted the ino-
tiun tor indefinite postponement would pre-;
veil by a large majority ; it had his most hear
ty approbation. He regretted that it was now
toq late, a period of the session to discuss, as
tf ought to be treated, a subject so interesting
stid ol which so many yiews might be taken,
tli at it was impossible in this brief debate,
fo do it any thinglike justice.
Mr. S. (Smith, of Maryland, said, he had
jjfgnde up his raind to take no part in the pre-
wfciMru3artM, nor should he have risen, but
iTii' anobseryation. to wit. that the reporter of
the bank charter T At rv Calhoun) had assured
the public, that the bank would regulate the
exchanges throughout every part of the union
1 he bank af the United States, as far as 1
have been' informed, has acted towards tbem
. ... .
iuc aiusi ivicDuiy pauVi . may say, mai tney .
are ou friendly terms in Baltimore. Every
kind of acevmmodation that either canj, with
propriety'. -five, has been afforded, li&rmony,
and a gnod 'uetfuoili is niraat1y asefuij
arid, 1 have no dob(:that the -.-reaJ 4tittest of
both will iuduce a eontiuaanee of forbearaoee
aud friendship toward each other. -The fa
cility of merchants and others transferring
was riot (said he) in Congress when the charl; their funds from one part of the union to ano-
ter was reported by that gentleman, as chair- ther,' without riik, by means 0f bank drafts, is
man of the coniinittee on national currency,, very great For instance, does any member
but I took mv seat before it was called up fbr want to send money from hence to Buion,
disru.wion, and, having taken a part in the ! Ne',v rleans' Kentucky, or any part of the
debate, I gave it my attention, and, I think I I1'"00' where there- is a branch ? He has sn.
may say, that the assurances were to this ef l l-PP'y- brap h ba.ik in ih.s city.
feet, that the bank woiild fend greatly to fndnlhe mU reCfe,,ve, ac ",ck' Pfb,et!
,. , , . - . J , he pleases, on the branch nearest to tbe place
equal.ze the exchanges between the severa of rcgideuce I( afner,,,ailt io flaltimora
states and with foreign nations." Has it had waHt3 , pay Li, debt ' in New-York, I.e has
that effect ? I think it has. and more rapidly ilin. to anniv t th l
head to medi. than was expected by its most sancuincireceivp a check havable to hi rPditor in
and moreover a heart in which, as in friends. What was our situation when the
that it was likely, without the propped ijridul- every Iju nan heart, ambition and avarice have bank charterpassed ? An almost general de
ters would be disappointed a piixc. i am unwilling now to give tuuui a preciation of bank notes. 1
. . ui if 1 . ..... a d. .11. ...
gtinee, the stoeicrioioe
in their reasonable ex
The money of Bal-
pectations of pr ttt tram puxHr to extend their operations to every vai- timore. and this district, was 20 ncr cent. less
J m m is lt .L'." ? ', - A- I '
ihe banK, he snouia suppress aiiiueotuns icy aniiio every mountain top, in every state oi vauo than that of Boston, 15 per cent, less
. . - . ... . . . . i w m a
to it which hff tounu in Ins oreat, in iroer io
perform what he should consider an obligation
of public faith. But. h? said, th -T0,: was -no
rettHOiv to dppreliend siich a result. -Tie Bank
had been in operation about fifteen months, the
Mother bank having gone into oporilion ii
Januarj . 1817 At the first emi-aunml divi
dend: they had declared a dividend I 4 per
eeu't. being at the rate of 8 per ceBt. per an
num. This was at the end of the litst six
months of aetual operation, when all tW ex
penses of the orsanizatioii of the bu;ik, and
1UU
theuuitm. Let tliom stop w1imv, when you t,an tj,at 0f New-York, and 10 per cent less.
pu'ting lrintq operation, were mcurrpo,
rebted
-would
niutjt (;f-ewrse have been ehargeu. M.
saitl he ihad h;ard a." etfntieniao deeply iriter-
in this yastlrarhitt iyHb-tid ean,
be able to divide at least 10 per ee it.
.per annum, u profit exceeding that of any bauk
south of the Potomac and north of South Caro
lina. Congress were therefore not bouud, by a
bv eonsiilerations of equity or good faith, to do
any thing to enlarge the profit of tin: bank,
which would be the effect of the system propos
ed, aud roust have been the object of the stock
holders in asking for it. Mr. M. said he should
not, however, be disposed, were it nut in his
pinion forbidden by principles of expediency,
todony the oppertunity of eucreasing its gain.
Although the stock of tho bank was now selling
atfojty three per cent, above par, he should
notlM'use a measure wiiich would raise it to an
hundred per cent, if he did not feel that thet
primary iurcrestsof the country would suffer
uy such a course.
It were a suiKcient argument against this
bill, were there no other, that it would' just
double the danger of counterfeiting, and tiie in
ducements to the commitment of this crime :
Aew York, on the branch bank there. This,
Mr. speaker, is the common course ; but there
fire times when the balance of trade maybe go
much againsl one city, and in favor of another,
that drafts of the bank cannot he given, and
such eases uave happened aud will again Imp-
gave tltcin their charter, you meant that they t,an cjthor Philadelphia or Virginia ; yet the : Pen . veuevr thpTt the bank
should stop-where your revenue is collect- fact was W ascertained in Confess, that "8M ,u best endeavors, by a supply of specie,
ed. I will resist these encroachments as long tjle banks of Baltimore had " more sjiecie " in " 1 - '"J? neonveieaee. 1 he gentleman
as I can, and, if I fail in my object, I shall, ieir vaults, in proportion to their capital, TDoUeat 1 4 a chekon' New
at least, have the pleasure of, recollecting,. Ind nutt.8 incircuIan,th,n either the banks i"iPP;3
thai I have taken tho first opportunity which f Philadelphia or New-York, and equal to"! py ? Did he offer United States bank notes?
Iins offered, to raise- my voice against them. Jiose of Virginia : the difference between the I No, sir he offered the notes of one of the Bis
t had been said, that it, was necessary to jjotes of Virginia and Philadelphia, and those jirict hanks : and certainly, aught not to have
pass this bill, in order to extend the opera-.' r,f Boston, was fen percent. The Boston expected, that the branch bank would have given
tions of this bank to the extent of its capital, hanks paid their notes in specie; no other; him a cheek on New York for paper not its
Already. Mr. M. said, the bank had divisled state banks did. Tho resuU was, that the;wJ Every bank, or branch, is bound to take
its profits at the rate-of eiarht'pcr cent, per mprliant nnd nomifo nf the states, whoso ie ire of itself. The United States own one-
anntim t and it wnoM he recollected, that. K i fifth
........... - - - ------ t- r -) unti iv vaij in Mn i'v i. . i w iva iuci3 -n iimu . v
dnitngtiicTxistnicG-trf thv old iiantc or me the iheasurv. for thd duties and taxes, than
United Slates, the ciir illation of its paper he- the eastern people. Baltimore, for instance,
ver exceeded seven millions and a few huu- paid only 80 dollars, when Boston paid 100
dred thousand dollars. The banks in the to the treasury. This was a just subject of
interior must depend for profits on the circu- complaint. How was this to be obviated?
lation of f liur paper : but the Bank of the Some gentlemen thought the state banks could
United States, located inthe great cities, was
not dependent on any such contingencies for gress fM(i no power over them. That subject
its profits. .But, what is the ability of the Was very ful'y discussed. The state banks
bank to issue paper with its present opiccrs ? believed' they could not; with safety to them
It has been in operation fifteen months, and selves, undertake to rjesiime specie payments,
has issued seventeen and an half millions of Aid, although I differed with them in opini
paper, of which the post notes do not amount ion at the time, yet I am now free to confess,
to seven millions ; leaving eleven millions in -'that they could not have resumed without the
round numbers, in circulation, and titcs issu- ,aid.of tlie bank of the United States. Baltic
ed within fifte en months. Give to the i hank niorc owed, at that time, to New-York, one
three years time, and at this rate they will miTlitn fivo hundred thrwuind dollars, which
have issued thirty-three millions, and, iii five Was thrown principally on the United
or six years, sixty ' or seventy inillions ? States branch for "payment. Had the hanks
And, in time, he had no doubt, they would, ()f Baltimore undertaken to pay their debts in
witliout tlie aid of this bill, supplant all the I specie, all they bad in their vaults would have
and in so far would deprive the institution of state nnstitutTons. Tlie states, Mr. M. said,; been drawn out to pay that debt, and the debts
one of the leading arguments in its favor. had all exacted, from the banks they had char-: d,,e to Virginia, Philadelphia,-and Boston.
Mr . wlPPP8 lo Jbe bni 0n tpred, heavy premiiiais ; inuch iienyief than The branch bank discharged those debts - in
ther grounds. He had no prejudice, he said, that paid by this bank to the United States. I effective money. Have said " tt the bank
against tbe momed interest, lie would protect i-phe premiums paid by the hanks ..f Virgifliatequalized the exchange more .rapidly than
every one .concerned in it by any act of sound ;ia(, WiU :upa credit.for Virginia equal to could have been expected." Yes, sir, in a
ousl;t
iegislation be would not embaritas any of the
great interests of the eouutry by a system of
narrow legislation. He was not personally a
stockholder in any monied. institution ; he was
glad at present that he was not,in this interest,
because '; he was called upon to exercise his
judgment impartially respecting it. In the
Bountry which he represented, the profits of this
system of baukio j, Mr. M. said, had been ap
plied io the most beneficial purpos education.
He was ind.spov d m narrow the profits of the
siaie oanKs, Dy -xtending-llie operation .ofthis
eoormous institution in such a manner as to
fetter their operations within limits top narrow
r.exf8teaee. He nas not disposed to lend the
. 0 ti house to carry the rills of influence
from This institution through every valley and
hamlet in the country. Let us suppose, said
ue,a orancn ot the JSaukof the United States
that of any other state, and made her finan
ces, poor as the state was a few years ago,
as Substantial as those of any other state.
If this were a new question, for the first time
agitated ; if Congress were about to create a
new system, he would concur with gentlemen;
he would in that case, have hut one bank, and
deri ve.-alljthe paper ...for circulation from one
institution which should be regulated, not by a
corporation, because the conduct of monied !
I corporations is always" ruled by. avarice
i but bv some plan which should ensure the
conformity of the measures of trie bank to a
great national policy, h But we have
long ago passed that stage ; and .numerous
banks have been incorporated oyer the coun
try, under the strongest pledge of the faith "of
very lew months alter us , organization, uie
exchanges from Boston to Richmond were at
par, and have so continued. S qtne difference
of exchange exists' in Charleston- Savannah,
and New-Orleans, but .not more than the cost
of transporting specie from Philadelphia;,' per
haps two to three per Cent. . The facilities
given to the eastern merchant, by the bank
paper, fully-compensates him in his purchases
of cotton for that small loss. Bank paper of
of all the stock of the national Lank, and
tnd will -eer and eaulioo on
(lie part of the bank and its branches. The
gentleman might as well have brought District
notes to the branch and demanded specie for
them : for, with the check of the branch, his
friend at New York coujd have demanded spe
cie for its amount. The samn gentleman be
lieves, that government did not receive an equi
valent for the charter. 1 differ with tim en
tirely. The United States own one-fiftb of
the stock, which is paid for, say seven millions
in five per cent, stock.
Ifthe bank divides1'? per cent, then the vs .-
vernmcnt gin 3 per cent, on its 7 00
dollars, say two hundred and ten thousand
per annum; or, for twenty years, the char
ier term, S4,200.DOd
.Bonus, 1,500,000, with interest thereon, in 20
years, above
Twenty loan oftices staved, tlie bank bcinjj
bound .to do the duty of loan .offices, and.
to pay all the pension's to its' own costs-,
100,0'JO dollars per annum, or tor twenty
years, . ,
Gain in 20 years to the United States,
Thus. the actual positive gain to the United
States by the bank, din ing its term of twenty
years, will exceed 4.20 "),0o0. The bank is,
besides, compelled, at its own. cost, to place
m oiey whetever the. SHine may be required
within the United States for the wants of the
government ; for this and the collection and
safe keeping ol the public money, it has an
equivalent iii the public deposits, , There is
one good which has resulted td the treasury
from .the establishment of'tfe bank, and to
Which l beg leave to call the attention of the
house. It is, thatyht-n the hank began to
to "act, thq secretary of the treasury placed
with it anJt notes of the interior banks to an
3,000,COO
-TOO '
9,20 .0 .Q
haviDG; every one of them ittifebloH mif. I .at
under what circumstances we shall legislate
when called upon, on any occasional pressure,
Jjal or imaginary, to tuspentBpeeie payments.
' He looked forward, he said, with apprehension
io me exteusiou of this institution. He had
been told that tbe brunches ' only waited the
passage of this bill to establish branches all
through thf stae which" he represented, and
acrosa its mouutainT. Urtuld it b necessary,
for the purpose of enabling the goyernnisui
couect its revenue, the ostensible object of
vvamtsuuieui oi mis oank, to, establish
f ?l a oil 0r lwo br,nebes iu each state
w the-uoion ? Certaiuly not : bat for the
purpose gala nijl the bank, branches were
it.: "leaed every-whece; and he asked
"uyoenent could result to
. ... from faciHtitihg "the meanT
. Wry this object iuto effect.
established along side of every state bauk. and!t,ie staes to support them, &c. and, Jlr. M.
1 - . . ' i i .-it i ? i .l .a. i
.saiUvue wouia not, in ins new ciiaracier oi a
representative in Congress, do that w hich he
should be ashamed to do in another, by lend
ing his vote to injure the banks which had
paid premiums to the states, of an - amouut
which could not be justified by the state of
things which must follow thelurther extension
of the Bank of the United States.
As to the suggestion which had been thrown
out, that, if the passage of this bill were re
fused, the bank could accomplish its object by
issuing paper in the shape of bills of exchange,
Air. M i: asked, if bills of exchange were pay
ble to bearer. He had never seep any such;
they ar& always payable to ; orderV"; TJut, U
tbejbank did attempt in that manner" to sup
ply a circulating medium', would it not be a
violation of their charter ? Were gentlemen
the
government
iba "bank" to
i amount exceeding: four and a half miltion of
the United States passes in every part of the pilars, which Tiad been received for taxes and
United states, tn all purchases, rqufil to gold public land. Those notes were of no more use
orilver, and why should it not ? "AH debts to the treasury, thaYTso mucTi blank paper.
uuc py the Dank, either lot its notes or ac
counts, are paid in specie, when demanded, 1
know of no instance where sjiecie has been re
fused by the bank, or any of its branches
to any person having a right to demand it.
I speak with confidence when I say none such
has Occurred in Baltimore, The tlciiiand for
specie, for the trade beyond the Cape of
Good Hope, has been immensemuch grea
ter, I understand, than formerly. To meet
that demand, aud to reinstate public confi
dence in bank notes, the bank has been un
der the necessity of importing specie to a
large amount To what extent I know not ;
but, I may venture to say, little short of four
millions. -And, I understand, they have
agents purchasing specie in Europe and the
West Indies, which they pay for bjr bills of ex
change purchased from the merchants, Bills
of exchange on London, when the bank began
were about par in Boston, ten per cent, above
par in rnuadefphia, twenty per cent, in Bal
timore and this District. They are at present
They would vau no, debt. The bank,, by its
agents, and its own cost, have realized above
three millions of dollars thereof, without inju
ry to such banks. The balance of perhaps
one million five hundred thousand dollars,
cannot be collected. The banks have not the
means of payment and, it is feared, that much
of that large sum is in jeopardy.. Some have
agreed to pav interest, whilst others can do
nothing towards payment, 'lhe establish
ment of the bank has effectually cured such
evil in future ; and will check the interior
banks from an intolerable emission of paper,
injurious to the credit olj bank notes. . They
are now confined, as they ought to be, to issue
notes only in proportion to their capital and
deposits. If the United States bank had' "not
been established, the depreciation of bank notes,
which had already commenced to an alarm
ing degree, would have continued until they
had become little better than continental mo
ney and been ruinous to the country.
What does thej bill propose r ; simply, to
willing to put such a construction on the act of bne to one and a half per cent." above par at authorise the hank to appoint a vice president