NORTH CAEOLIf A S lEOTt ft UsSBL..
. - - - - - ... - - - - ' .rr-.- I' ( I ' .
would terminate on the 3d of March, 1836.
2d, The public interest required that the
tleposites of public money should not continue
lo be made in the Bank of the United States,
until ihe close of its existence; but should be
transferred to some other place, at some peri
od prior to that time.
3d. The power of removal being reserved ex
clusively to the SecreUry of the Treasury, by
iba terms of the- charter, his action
ur!i5 nncprir in rtnlp.r to effect it, and the
deooskes could not, according to the agree
irient made by Congress with the stockholders,
have been removed by the Legislative branch
of the Government, until the charter to the
uanK was at in r
Slth. The near approach of the time wlfen
vhfiharter would expire, as well as the condi
tion of the mercantile community, produced b
the conduct of the Bank, rendered the remo
val indispensable, at the time it was begun;
'nod it could not have been postponed to a later
flay, without injury to the country.
Acting onlhese principles, I should have felt
myself bound to follow the course I have pur
sued in relation to the leposites wit- n
any reference to the misconduct of the lin
Bat there arc other reasons for the removal,
.growing out of the manner in which the affairs
of the Bank have been managed, and its mo
ney applied, which would have made it my du
v to. withdraw the deposites, at any period of
die charter.
It will, I presume, be admitted on all hands,
thftl.'the Bank was incorporated in order to
create an useful and convenient public agent,
to assist the Governmentttn its fiscal operations.
'The act of incorporatien was not designed
merely as an act of favor to the stockholders,
nor were exclusive privileges given to them
for the . purpose of enabling them to attain po
ittical power, or to amass wealth at the ex
pense of the people of the United States. The
motive forestablishing this vast monopoly, was
the hope that it would conduce to the public
rood. . It was created to be the agent of the
public, to be employed for the benefit of the
people, and the peculiar privileges and means
of private emolument given to it, by the act of
incorporation, were intended as rewards for
the services it was expected to perform. It
was never supposed, that its own separate in
terests would be voluntarily brought into colli-'
s?on with those of the public. And still Jess, i
was it anticipated, that it would seek by its mo- j
4icy to obtain political po wer, and to control
ihe action of the Government, either by the
4'avors it can shower, or the fear ofits resent
ment. Its duty was simply that of an agent,
bound to render certain services to its princi
pal, in consideration of the advantages granted
it. And like every other public agent or
oJBGccr, its own separate; interests were sub
ordinate to its duty to the public. It was
bound to consult the general good, rather than
its private emolument, if they should happen to
tvorne into conflict with one another. If there
fore it sought to obtain political power,
o'r to increase its gain, by means which would
iirobably bring distress on the community, ij
violated its duty and perverted to the public
inrurv. tho -powers which were given to be
used for the public good. And in such an
event it was the duty of the public servants, to
whom tho . trust was reserved to dismiss it, so
lar as might lawfully be done, from the agency
it had thus abused.
Itegarding the Bank therefore, as the agent
of the United States, and bound by the duties,
tftia liable to the obligations, Which ordinarily
hdong tt the relation of principal and agent,
except where the charter has otherwise direc
ted, I proceed to state the circumstances, which
shaw that it had justly forfeited the confidence
ov Uie Government, and that it ought not to
have bocu further trusted as the depository of
public money.
The United States, bv the charier, reserved
the right of appointing five Directors of the
. Rank. It was intended by this means, not on
Jv t provide guardians for the interests of the
public, in the general administration of its
iriiairs, but also to have faithful officers, whose
situation would enable them io become inti
mately acquainted with all the transactions of
tiro institution, and whose duty it would be, to
apprise the proper authorities, of any miscon
duct, on the partofjthe corporation, likely to af
fect tho public interest. The fourthfundamental
article ef the Constitution of the corporation
(Jeclares, that not less than seven Directors
sliall constitutes Board for the transaction of
business. At these meetings of the Board, the
directors on the part of the United States had,
nt" course a right to be preset, and, consequent
ly, if tho business of the corporation had been
tiui.uicted in th manner which the law requires,
fherewas abuudant security that nothing could
which those appointed by the United States
hove aright to be present, many of the most
important money transactions have been, and
still are placed under the control ot a commit-
tap rlprmminritfi ip V.YlmniTp r,nmmittce. Ot
which no one of the public Directors, has been
allowed to be a member since the comment
mint of the nroSPni vpar. This committee is
j ..; ,
nnt axran olontn,! kn Ko Knarrt. and ne DUUIlt
J .. .
Directors have no voice in their appmnmeiu
They are chosen bv the President of the Bank ;
and the business of the institution which ought
to be decided on by the Boatpf Directors, is
in manvinstances transacted by this committee,
and iih one has a riirht to be present at their
proceedings but the President and those whom
he shall please to name as memoers oi una ujui
mittee. Thus loans are made, unknown at the
time to a majority of the Board, and paper dis
counted which might probably have been re
jected at a regular meeting of the Directors,
the most important operations oi tne oanw are
sometimes resolved on, and executed by this
committee; and its measures are, it appears,
designedly, and by regular system, so arranged
as to conceal from the officers of the Govern
ment, transactions, in which, the public inter
ests are deeply involved. And this fact alone
j ...
furnishes evidence too strong to be resisted,
that the concealment of certain important
operations of the corporation, from the officers
of the Government, is one oi the objects mten
ded to be accomplished by means of this com
mittee. The plain words of the charu r ar
violated, in order to deorive the be. -pi : the
... 7 J
United States of one of the principal st-riiries,
vhich the law had provided to guard thri. in
:-rpt. and to render more safe, the iiblic
noney entrusted to the care of th- hank.
Wo ul i any inHvidualuf ordinarvdisrreti. fi,
continue his monev in the hands of an agent
who had violated his instructions for th.! pur
Dose ofhidine from him the manner in which
hp was r.oni luetin? the business confided to his
charire? Would he continue his property in
... . i
be enabled to apply its money to the most im
proper purposes,) without detection or expo
sure. It its conduct is impeached, on the
....
ground that it has used its great money pow
i
is in effect placed at the disposition of the Pres-1 above passage is quoted, he differed from the nst 0f
dent of that Institution. He is authorized to thf p1"1- Put tne hfference was on th other
expend what he pleases in causing " to be pre- principles, and not on the one slated.
pared and circulated sucn aocumiiis ana paper . . m ""'.17, 7, "1 " . 17" fc u,e ase
er to obtain political influence, the investiga- as may communicate to the people information yet t0 mn ut hy Von,iiJeralions which f
non oi me cnarge is in its very nature, an en-in regara to me naiure anu operauons oi me gether out of the course pursued by the Bank a
quiry into its transactions with individuals. Bank." And he may thereiore, under tne which would have equally influenced the deriv e
auu aiinuugu me accounts orount iorwaru on very lnuemuic icons i iwuiuhuuo, k'"J 4 111,0 tyaiiiut-uiy m lemuun in 1 nr iiepotJitep ii tk.
such occasions, mav he the arrounts of indi- is manv persons as he pleares, at sucm sala- oank were now in the hrt years, ot its exister
J I . -.. i.l A J . t t - .1 f I. '
viduals, yet they are also the accounts of the ries as he thinks proper, either to prepare dai- ims view 01 tne sunjjn, ine loiiowmg pro.
Bank, and show its conduct. And beine the Iv paragraphs fornewspapers m favour 01 iney-Hi- -""""2"-V'
m - - m a mi?a m. iini 111 r m m w t m. i iinr i i if i vrnn .
UanK, or 10 write pampnieis anu Government in th A Tvhir.h th uie
And he may - fo orm. -I t
evil, the public safety requires, that all of its ven provide for the publications, by salaries WaUaeh to the character of the agent, in onlinarydal
fiscal agent of the Government, with such im
mense power to be exercised, for good or for fluence the public judgment.
proceedinsrs should be open to the strictest printers, or by purchasing presses and types, of principal an.l acrent amonsr imlividnaU; an.t ;, J
and most rigorous scrutiny. Its charter may and placing mem in me nanus in gc - - uuiy oi me omcer oi me vjovernment to
. . ' . o - ...I. . i i .1 r t rni : I whom t h.. nnnm. U ..r.....iv.l : . . ,u
be forfeited bv its misconduct, and would be plove.l and pain oy tne uanK. inereisuuuui- - , wnn.
...i. . ..
wiini.-ver its
su h -,u W(HilJ
to ilis iiiij l,;.
er be proved except by the examination and scription of articles which appear to have been 2.1. That by on ana of its Exchange Committee it
disclosure of its dealings with individuals. paid for under this resolution, it seems that the has so organized its business, w to deprive thepui.
2d. It is not merelv by its concealments President of the institution has supposed that servants of those opportunities of ohservinir u p'oni'
that the Bank has proved itself regardless of publications containing attacks upon officers ot uuct, wn.cn tne law had provu.e.i Jor jhe safety
the duties ofits agency. Its own interests will the government who aresupposed to stand mth
k Av.,,i u ;,-,. nrnonhi ani the i wv ot the renewal oi tne cnarier. is one oi mr; i - - -: - ccr
on. l nai it nas also, in tne case, ot the three
- - - uim vi 1 uiii vi i LiliaiitT' uil n p in....
, :ii . , . - . """it
was but too plainly the case in the atlair ol the pears, approved ny tne uoara, as mev comm- en ieavoreu unjustly
three Der cents above mentioned. A recent ued the authority in his hands, unchanged, af- the Vxpenso of the in
instance proves its rule of action is not changed ter the manner in which a portion of the mon
in that respect. And the failure of the French ey had been applied was laid before them. And
Government to nav the hi drawn for the first we are lelt to conclude, mat mis iiimiiuuuu
instalment due by the treaty, has been made is now openlv in the field as a political parti
the occasion of endeavoring to obtain from the san, and that one of its means of warfare, is
... . - . , . , I .1 - j . ... .j . 1 1 : 4' k I . i i . J . .. . . .
public, the sum ot iJoS,!S4 77, to wnicn no me uesirucuon oi me pouucai Hamimg w.o. vvunnraw me lunda ol the United States from
principle of justice appears to entitle it. 1 he who are oposed to the renewal ol tne cnarier
money for which the bill was sold remained in The sum actually charged to the expenses, un
the Bank. The expenses it incurred were of j der this resolution, is sufficiently sta thug.
a - . a
small amount, and these the Government are How much more mav have been already squan-
willing to pay. But the corporation not con- deied, we are yet to learn and the work of
tent with the profits it was deriviug from the preparing and circulating" such publications,
is still, it is presumed, going on under the last
resolution ot the Board. It is moreover lm
possible to ascertain the specific purposes t(
pronts it was oenviug
millions of public money then in its vaults, and
which it was dailv using in its discounts, en-
his hands when he had not only ascertained deavors to convert tne puonc disappointment
that concealment had been practiced towards into a gainful transaction for itself, and de-
him, but when the agent avowed his determina
tion to continue in the same course, and with
hold from him, as far as he could, all knowl
edge of the manner in which he was employing
funds? If an individual would not be cx-
mands the large sum above mentioned, with
out pretending that it sustained any loss or in-
convenience, commensurate witn the amount it
eeks to obtain fr an the Governmeut. The
cal agent of the public, attempts to avail it-
3
his
nected to continue his confidence, under such 1 self of the unexpected disappointment of the
circumstances, upon what principle could a principal, for the purpose of enhancing its
different line of conduct be required from the own pfWus at the expense of the communi
officers of the United States charged with th- ty.
care of the public interests ? The public mo- 3. .There is sufficient evidence to prove that
ney is surely entitled to the same care and pro- the Bank has used its means with a view to ob-
tection, as that of an individual, and if the lat- tain political power, and thereby secure the
ter would be bound, in justice to himself, ti. renewal of its charter.
withdraw his money from the hands of an The documents which have heretofore been
agent, thus regardless of his duty, the same laid before Congresa, and n ;w on its files, will
principle requires that the monev of the United show, that on the IJlst December, 1K?0, the ag-
States should, under like the circumstances, be gregate debt to ttie lianK, was 4 .,u-i,JU-i .4,
withdrawn from the hands of their fiscal agent and that on the 31st December, 1K21, it was
And as the power of withdrawal was confided 8(53,0t),452 93, being an extension ofits loans
to the care of the Secretary of the Treasury, it in a single year 'of twenty millions of dollars,
was his duty to remove it on this ground alone, and an in rease of nearly fifty per cent, on its
if no other cause of complaint had existed previous accommodations,
against the Bank. The conduct of the Bank, A if to leave us no room to doubt as to the
in relation to the three per cent, stock ef the motive of this extraordinary conduct, it eontin
United States, is a memorable instance of the ued to add rapidly to its loans and on the 1st of
power exercised in secret by the Exchange Vlay, Kfci, while its petition for theVenewal of
Committee, and the abuses to which it is inci- its charter was yet pending before Congress,
dent. The circumstances attending that trans- they amounted to 570,4 .'8,070 7, being an in
action have been so fully laid before. Congress crease of s7.4;M ,617 79. in the four preceding
and the public, that it is useless to repeat them months, and making altogether an addition of
here. It was a case in which this committee $28, 0 :o,70 48, in the short space of sixteen
not only managed in secret a monied transac- months, and being an extention of more than Oti
tionofvast amount, intimately connected with per cent, on its previous loans, Such an li
the interests of the people of this country, but crease at such a period ofits charter, is with
one where the measures of the Government out ex mple in the history of Banking institu
were thwarted by the Bank, and the nation tions. On the 31st of December, 1830, when
compelled to continue for a time, liable for a its loans amounted as above stated to only $4vl.
debt, which it was ready and desirous toextin- 402,304 24, the corporation had been in exis
guish. Nor is this the only measure of the istence fourteen years. The sudden and great
kind which has come officially to my knowledge, increase was made when the charter was draw
I have the honor to present herewith a report ing to a close, and when it had bui little more
made by three of the public Directors to the than four years to run. It cannot be supposed
President ol the United States on the 22d April, that these immense loans were made, from a
1S33, marked A) in which, in compliance with confident expectation that the charter would be
his request that they would communicate to renewed. On the contrary it is now an histor-
him such information as was within their pes- ical tact that the Bank itseit ueemeti the chan
onal knowledge relative to these unusual pro- ces of renewal so doubtful, that in the session
ceedings of the Board of Directors, they disclose of Congress begining in December, 131, it pe
ine exceptionable manner in which the power titioned for a recharter, and the reason gene
conferred by law on the Board has been sur- rally assigned for pressing for a decision, at
rendered to the Exchange Committee; that this that time, was the great extent ofits business;
has been done evidently with the design of pre- and the necesity of preparing to bring it to a
venting a proper and comtemplated examina- and the necessity of preparing to bring it to a
tioninto the accounts of persons whose paper close if the charter was not to be renewed.
was offered for discount; that a minority of the Thm, with but little more than four years to
Board apparently sufficient to have prevented rd'n. with doubtful chances of renewal, and a
the loan, if the security was bad: were depiived ware of the necessity of beginning to arrange its
of their votes upon the question; and that the vast transactions, it increases its loans in six-
long established bye-laws of the institution teen months, more than twenty-eight millions
set aside for the purpose of carrying of dollars. Was this impruuence only: it
these designs into effect with less difficulty orl cannot be believed that those who managed its
be done, injuriously anecttng tne interests of embarrassment. concerns, could have commuted sucn an over-
ihc people, without being immediately com- If proceedings like this are sanctioned by sight. Can any proper reason be assigned for
inunicated to the public servants, who were au- the constituted authorities of the United this departure from the course which the mter-
thorized to apply the remedy. And it the cor-1 States, the appointmentof Directors on their part ests of a monied corporation, as well as that of
Duration 'has so arranged its concerns, as to hs an idle ceremonyand afinds nosafeguard to the country, obviously required, l am not aware
AToncoai 1 from the public Directors, some of its the public treasure, in the custody of the i . that any sufficient justification hes been offered.
xnot important operations, and has nereoy 4nd even legislative enactments, in relati And this extraordinary increase oi its loans.
ilestroved the safe-guards wmenwere ueaignru this corporation, are of but little vaIUe,if it mav, made in so short a space oi time, at sucn a pe-
to secure the interests ot tne unueu oiaies, u at us pleasure, disregard one of the fundamen- nod of its charter, anu upon iue eve oi a se
would eem to be very clear, that it has for-jtal articles ofits constitution, and transfer to a verelv contested election of President, in which
feited its claim to confidence, and is no longer secret committee, the business which by law, the Bank took an open and direct interest, de-
xmrtliv of trust. In the ordinary concerns of ought to be transacted bv the Board. It is monstrates that it was using its money for the
life,' ait) one individuals, no prudent man would scarcely necessary in presenting this document purpose of obtaining a hold Upon the people of
cpiithiue to place his funds in the hands ol an to the consideration of Congress, to notice an this country, in order to operate upon tneir tears,
ar'ent,after he discovered, that he was studious-1 objection which has been sometimes put for and to induce them, by the apprehension of ru-
lv concealing from him the manner in which ward against the publication of any procee- in, to vote against the candidate whom it de-
tnev were employed. The public money aings wuicu reiaie 10 the accounts of private sired to ueieai. inomerwurus, uusgrcttimoii-
ought uct to be guarded with less vigilance, individuals. The circumstances detailed, are I ied corporation determined to enter the politi-
inan that of the individual. And measures ot the regular anu omciai transactions of the Board cal arena, and to intiuence tne measures oi tne
4th. That there is sufficient evidence to show that
the Bank has been, and u is. se kirur t , nKtam
pohticjil-power, an 1 has useil us mony for tu )Ur
pose of influencing the elation of the .nibiic -tMants
Mild it vas incumbent uxn the Secretary ot the
Treasury, on that account, to w.th.lraiv fro.i;
session the money of th - United States ivhi. h it was
ihus using for improper pu-)ose. Up n the vhol.
I have founM myselt houml by thestrongest ohlifrj!
which the money mav in fact have been ap- tions, to remove the depositee The obligation was
plied, since vouchers are not required to show imposed upon me hy the near approach of the time
the narticular sc-rvire for which it was jfiven. .W,1C ' 1,1,8 rwraiioii win cease to exii, as wet! as
With these nnsitivP nro,,fs of thn efforts of the J "M,rv "- -r" 111 lu 1,UI"
i r - - .
ank to obtain power, and to influence the
measures of the Government. I have not hesi
tated as to the path of duty. If, when this evi-
The propriety of removing the tiepj ites being
thusevidem, and it b injz consequently my iuty to
select the places to which they w re to be removed.
dence was betore me, 1 had failed to withdraw lit. became necessary that arrangements shoiibl be ira-
the deposites of public money from the Bank,
it would have been lending the countenance
and support of this Department to measures
which are but too well calculated to destroy
.1 S If
the purity ol our institutions, and endanger
mediately ma le with the new depositories of the pub
lic money, which wou&ljsot only render it s;de, but
w'uld at the pame time secure to the Government
an ! to the community at largf-, the conveniences anJ
facilities thnt were intenijeil to be obtained by incor
X): Jiting: the Bank ot the United Stales. Measures
were accordingly taken for that puijKise, and copies
thereby the liberties of the people. It cannot
be supposed that these expenditures are justi- ot the contracts' which iiave been made with the se
liable on the ground that the Bank has a right lecud Banks, and ol the letters of instruct ions to them
to defend itself, and the monev in question was from this Department, are herewith submitted. The
concealment, on the part of this corporation, of Directors, nor do they involve the private! Government by causing its weight to be fell in
are not only contrary to the duties of its airen- debtor and crediti r account of persons dealing I the election ofits officers.
cy, but are also in direct violation of the law, with the Bank, which is alone included in the But if the circumstancest above stated were
to which it owes its corporate existence. And distinction taken by the charter in regard to I not of themselves, sufficient to prove that the
Hje same misconduct, which, in the case of nrivate acccounts. it the argument thus
private individuals, would induce a prudent brought forward were a sound one, there coul .
man to maim an .agent trora his employment, be no such thing as an examination ot any val
would require a similar course towards the fis- into the conduct of the Bank.
cal agent of the Government, by the officer to Because the business of the Bank being with
whom the law has entrusted the supervision of ;ni;M.ifll it misconduct could never have
its conduct, and given the power of removal. been shown without bringing before the public
Tried by these principles, it will be fouud the individual transaction in which the conduct
that the conduct of the Bant made it the duty 0f the Bank was impeached. A.nd if it could
of the Secretary of the Treasury to withdraw make good the position that such proceedings
from its care the public funds. . ' are never to be exposed to the public, because
1st- Instead of a board constituted oi at least lndi viduals are concerned in them, it would ef
$even Directors, according to the charter, atjfectually shut out all useful e-aminationTand
Bank had sought, by its money, to obtain po
iitieal nower, and to exercise by that means a
controlling iniiuence on the measures of the
Government, recent developements have fur
nished such Drool as to leave no room tor doubt.
I have the honour to transmit herewith an offi
cial statement (marked B) signed by f our of the
;ublic directors in the Bank, showing at ihe
sa ne time the unlawful manner m which its
ouihess is conducted and the unwarrantable
purposes to which its money has been and still
is applied. . It will be seen by the proceedm
therein stateti, that the whole capital of the Bank I
therefore properly expended. Some of the
items accounted for, sufficiently show in what
manner i( was endeavoring to defend its inter
ests. It had entered the field of political war
fare as a polrt.Csd partisan, was endeavoring to defeat
the election of those who were opposed to its vie.s. I:
vv:ts st ivinr by means of its money to controuf th
C"U 8 oi tiie vernment by driving from power thos-'
who wen obnoxious to its resentment. O oi it h
permitted to a great taonied corporation to enter on
such a controversy, and then justify its conduct on
the ground that it is defending its own interest T
The right of such an institution to interfere in the
political concerns of the country tor any cause what
ever, can never he recognize-! ; and a defence like
this, on the part of the Bank, could not be tolerated
even if the individual stockholders! alone were' thus
using their own money to promote their own interests.
But it is not only the money of individuals, which
is thus applied, The one-fifth of the capital of ihe
Bank, amounting to seven millions of dollars, belong
to the United States, and the one-fifth of the money
which has been expended, and is yet to be expended,
under thi resolutiou, is the property of the public
an i does not belong to private individuals. Yet the
Board of Directors assert the right, not only to author
ise the expenditure ot the money of individual stock
holders, in order to promote their individual interest;
but have also, by the resolution in question, taken
uxm themselves to give the like authority over
money which belongs to the United States.
Is an institution which deals thus with the noney
of the people, a proper depository for tho public funds?
W hen such a right is openly claimed and acted on
by the Board of Directors, can the money ot the U.
States be deemed safe in its hands ? The same prin
ciple that would sanction the application of one por
tion of the public money to such purposes, would jus
tify the like use of all that nay come to its posses
sion. The Board of Directors have no lawful au
thority to employ the money ot the United States
for such objects. So tar as (he nation is concerned
in the charter of the Bank, the people through their
own representatives in Congress, can take are of
their own rights, and vindicate the character of the
Bank, if they think it is unjustly assailed. And
they do not need the aid of persons employed and
paid by the Bank, to learn whether its charter be
constitutional or not, nor whether the public good re
quires it to be renewed. Nor have they authorized
the President and Directors ol that Institution, to
expend the public money to enlighten them on this
subject.
rl he resolution in question is, moreover, in direct
violation of the act of Congress by which this corpor
ation was established. And it is difficult to imagine
how the unlimited artd irresponsible power over the
money oi the Bank, which the Directors have given
to the President, can be reconciled to the clause in
ne cnarier wntcn requires seven iireciors 10 lonn a
Board for the transaction of business. If the expen
diture ot monev, lor the purposes contemplated bv
the resolution, be a legitimate part of the business
of the corporation, the Board could uot lawfully- trans
fer it to one ot ltsothcen, unless they can by -resolu-
lion, surrender inio me nanus oi tneir f resident the
entire power of the corporation, and commit to the
care of a single individual, 'the corporate powers
wnicn ine law nasueciarea should be exercised bv
the Board of Directors,
Chief Justice Marshall, in the case of the Bank of
the United States vs. Dandri ;ge when speaking of
me oootis requjrea 10 De given by the Cashiers of the
tfank, says, it requires very little knowledge of the
interior of hanks to know, that the interests of the
stockholders are conimitted,to a very great extent, to
these and other officers. It was, and ought to have
been, the intention of Congress, to secure the Gov
ernment which took a deep interest in this institution,
an i to secure individuals, who embarked their for
tunes m it, on the faith of the Government, as far as
possible, from the mal-pcactices of its officers" But
the Directors of the Bank eeem to have acted on
principles directly opposite to those stated by the
Chief Justice. And instead of endeavoring to secure,
" as far as possible," the public and individuals trom
the raal-practices ofits officers, they place the funds
of the Bank under the control of a single officer, from
whom neither security nor specific vouchers have
been required. It is true, that in the opinion which
tho Chief Justice gava in tfca caee from which t$e
contracts with the Banks in the interior, are n t pre
cisely the same with those in the Atlantic cities. The
difference bet wen tlu m arises from the nature of the
business transacted by the Banks in th-se different
places The State Banks selectee ar .-dl institutions
of high character and undoubted strength, aud ;tie
un !er the m.nag nit nt .ml confroul of persons of un
questioned p o ity in-- intelligence, .n i in order to
ensure tlu- safety of the public money, each of 'hums
req jireT, and has ageed to give security, wtjwvrr
th amount of the deposite shall exceed the hail I'tlic.
amount of the capital actually paid in; and thi-s Dr
parlment has reserved to itself the. rjght to demand
the amount on dejosife .iay not be equ.U to the sum
above stated. Tlie Banks selected have also several
ly engaged to transmit money to any point at winch
it may be r quired by the dim: tions ofthif Dfjjartnien!,
for the public service, and to perform all the service,
to the government which were heretolbre rendered
by the Bank of the United States. And by agree
ments among themselves, to honor each othe-ti noteu
and drafts, they an; providing a g- neral currency at
Jeast as soun.i ";is ttiat of the Baik of the U. S. ami
will afford facilities to commerce,and in th btwines
of domestic exchange, quite equal to any which tho
community heretofore enjoyed.
There has not teen yet 'sufficient time to perfect
these arrangements - ut enough has already bee rk
done, to show that even on tne score oi expeaem,-
Bank of the United States is not necessary, eitnr icr
the fiscal operations of the Governnteift, or the putdic
convenience : and that every object which the char
ter to the pres. ut Bank was designed to attain, may
be as effectually accomplished by the State Banks.
And, it this can be done, nothing that ia useiui
be lost, or endangered by the change, while much
that is desirable will be gaine by it. ror no one.
these corporations wdl possess that absolute, anu hi
most unlimited dominion over the property oi mci-ui.
Zen of the United States, which uV present Baut
hohls, and which en ibles it at any inunienr,at iUowd
pleasure, to bring distress upon any port on of W
community, wn-n ver it may aeera u u&eiu' "
interest to make its power felt. The mnVnceoi ew.
of the State Banks is necessarily limited to its own
immediate neighborhood, and thev will m
check by the other local Banks. They will not mere-
lore be tempted by the consciousness ot power u o
piretb political infiuence, nor likely to interfere intM
elections of the public servants. ,
They will moreover be managed by prsone
reside in the midst of the people, who are to be io
mediately affected by their measures, and tin ' can
not be insensible or indifferent to the opinions
peuliar interests of those by whom they an 'i "1
surrounded, and with whom they are constantly
sociating. These circumstances ahvays -tarniw
strong safeguards against an oppressive exerf tf
power, and Ibrcibly recommend the em;doynie 1
State Banks in preference to a Bank ol uV .n
States with its numerous and distant Branches,
corporation of the latter description, is contine':
acting under the conviction of its immense i
over the money concerns of the whole country,
dealing also with the tbrtiuie and condor ts ol
who are disumt Irom them, and to whom k
personally strangers. The Directors ol Jhe nd
are not compelled to hear daily the on,P
witness the sufferings of those who may ber
by their proceedings. nnot
From the nature of man such an inftiiutij
always be expected to sympathize with toe cV
and teehngs of those who are attecteu uy r t.0V
A id we ought not perhaps to be surprisedi
poration like the Bank of the United Stai.
the feeling of rivalry, or from cold cak-ulai
terest or ambition, should deliberately pkn al '
cute a course ot measures hnzhly wyur'1
pressive, in places where the Directors woo
its-conduct have no loca; sympathies t restrdNnll y
It-is a fixed principle of o-jr political f l,t 1.
guard against the unnecessary accumulation a
er over persons and property in any hands.
hands are less worthy to be trusted with it tnaa
of a monied corporation. In the selection
of the State Banks as the fiscal ajraioi iy
ernroent, no disaiivantages appear to have .
curred oo the score of saiety or conYeaieDC'.Kat
general interests ot the country, while uC'
viduabie will bo gained by the chanffe. i .-.
ever well arrore of th rast pwr of the