The New-Jersey gazette — Burlington [N.J.], 1781-06-06 00:00:00, page 1

On the 17th day of May, 1781, the following plan was
submitted to the consideration of the United States,
in Congress assembled.
Plan for eftablifliing a National
Bank, for the United States
of North-America.
I.
THAT a subscription be opened for four
hundred thousand dollars, in (hares of four
hundred dollars each, to be paid in gold
or silver.
11.
That the subscription be paid into the hands of
George Clymer, and John Nixon, Esquires, or their
agents.
111.
That every subscriber, of less than five (hares, pay
the whole sum an the day of his subscription.
IV.
That every subscriber of five (hares, or upwards,
pay one half the sum, on the day of his subscription,
'and the other half within three months of that day.
V.
That every holder of a share ffiall be entitled to vote
by himfelf, his agent, or proxy properly appointed,
at all elections of directors, and that he have as ma
ny votes as he holds (hares, and that every subscriber
may fell or transfer his (bare or (hares, at his plea
sure, the transfer being made in the Bank books, in
presence and with the approbation of the proprietor,
or his lawful attorney, the purchaser then to become
entitled to the right of voting, &c.
VI.
That there be twelve Directors chosen from among
those entitled to vote, who at their firft meeting (hall
choose one as President.
VII.
That there be a meeting of the directors quarter
ly, for the purpose of regulating the affairs of the
Bank, any seven of the directors to make a Board,
and that the Board have power to adjourn from time
to time.
VIII.
That the Board of Directors determine the man
ner of doing business, and the rules and forms to be
pursued, appoint the various officers which they may
find necessary, and dispose of the money and credit of
the Bank, for the interest and benefit of the proprie
tors, and make from time to time such dividends,
out of the profits, as they may think proper.
IX.
That the Board be empowered from time to time,
to open new subscriptions, for the purpose of encreaf
ing the capital of the Bank, on such terms and con
ditions as they (hall think proper.
X.
That the Board shall at every quarterly meeting
choose two Directors, to infpe& and controul the
business of the Bank, for the ensuing three months.
XI.
That the Infpedors so chosen, shall, on the even
ing of every day, Sundays excepted, deliver to the
Superintendant of the finances of America, a state of
the cash account, and of the notes issued and re
ceived.
XII.
That the Bank notes, payable on demand, shall by
law be made receivable in the duties and taxes of
every state in the union, and from the refpedive dates,
by the treasury of the United States, as specie.
XIII.
That the Superintendant of the finances of Ameri
ca (hall have a right, at all times, to examine into
the affairs of the Bank, and for that purpose shall
have access to all the books and papers.
XIV.
That any director or officer of the Bank, who shall
convert any of the property, monies or credits there
of, to his own use, or shall any other way be guilty
of fraud or embezzlement, shall forfeit all his (hare
or stock to the company.
XV.
That laws shall be palled making it felony with
out benefit of clergy, to commit such fraud or em
bezzlement.
XVI.
That the subscribers shall be incorporated under the
name of the President, Directors and company of the
Bank of North-America.
[Vol. IV.] THE [Numb. 180.)
NEW-JERSEY GAZETTE.
From the Pennsylvania Packet.
TO THE PUBLICK.
WED NE SD AY, June 6, 1781.
That as soon as the subscription shall be filled,
George Clymer and John Nixon, Efqrs. shall publish
a lift of the names and sums refpedively fubferibed,
with the place of abode of the subscribers, and ap
point a day for the choice of Directors, to whom,
when chosen, they shall deliver over the money by
them received.
On the 26th day of May, 1781, after maturely con
sidering the above plan, Congress came to the follow
ing resolutions upon that fubjeft.
By the UNITED STATES in Congress assembled,
May 26, 1781.
Resolved, That Congress do approve of the plan
for establishing a national Bank in these United States,
submitted to their consideration, by Mr. Bobert Mor
ris, the 17th May, 1781, and that they will promote
and support the fame, by such, ways and means, from
time to time, as may appear necessary for the
institution, and be confifteht with the publick good.
Resolved, That the subscribers to the said Bank
shall be incorporated, agreeably to the principles and
terms of the plan under the name of the President,
Directors and company of the Bank of North-Ameri
ca, so soon as the subscription shall be filled, the Di
reftors and President chosen, and application for that
purpose be made to Congress, by the President and
Directors elected.
Resolved, That it be recommended to the several
Rates, by proper laws for that purpose, to provide,
that no other Bank or Bankers shall be eßabliihed or
permitted within the said Rates, refpedively, during
the war.
Resolved, That the notes hereafter to be issued by
the said Bank, payable on demand, shall be receiva
ble in payment of all taxes, duties and debts due, or
that may become due or payable to the United States.
Resolved, That Congress will recommend to the
several Legislatures to pal's laws, making it felony,
without benefit of clergy, for any person to counter
feit Bank notes, or to pass such notes, knowing them
to be counterfeit; also, making it felony, with
out benefit of clergy, for any President, Infpeftor, Di
rector, officer or servant of the Bank, to convert any
of the property, money, or credit of the said Bank to
his own use, or in any other way to be guilty of fraud
or embezzlement, as an officer or servant of the said
Bank. Extract from the minutes,
CHARLES THOMSON, Secretary.
XVII.
That none of the Directors shall be entitled to any
precuniary advantage for his attendance on the du
ties of his office as Director, or as President, or In
fpedor, unless an alteration, in this refped, shall
hereafter be made, by the consent of a majority of
the Rock-holders, at a general election.
XVIII.
This full aquiefcence of the supreme representa
tives of America, gives such weight to the reasonings
on that fubjed, as carries with it the fullcft convic
tion.
It is not therefore to enforce but to explain the plan,
that I have taken the liberty to submit the following
observations.
The four firft articles relate to the Rock and the
means of obtaining it—Four hundred thousand dol
lars are named; because it is conceived that such
sum will be speedily and readily fubferibed: how far
it may be adequate to the purposes in view, or how
much greater sum might have been fubferibed, are un
necessary questions: let us at present make use of the
resources clearly in our power, and if (as is moR pro
bable) those resources shall on experiment appear
greater than at present, then, according to the ninth
article, the operation may be further extended, so as
fully to answer the end proposed.
The gentlemen named to receive the fubferiptions
are the present Directors of the Pennsylvania Bank:
as this business must of necessity be, in the present
instance, tranfaded by private persons, and as they
are generally known in that line, they naturally pre
sent themselves to our consideration; their private
characters will give additional weight to all their ex
ertions.
The eighteenth article points out the mode of de
livering the business over out of their hands into those
of the proper officers.
The sixteenth article, which provides for the incor
poration is of such apparent propriety that nothing
need be said upon that fubjed; and the fifth article,
designating the rights of the Rock-holders, is found
ed on principles so well known, understood and felt
throughout America, that explanations or argu
ments would be fupcriuoß«
The credit of Bank paper from these circumftanceg
has always been very great, in every country where
Banks have been established. It is therefore almost
reduced to a certainty, that it will be so in America,
for in all reasoning on this fubjedt, our surest guide is
experience.
To prevent the Bank from abusing publick confi
dence, tire eleventh and thirteenth articles are provid
ed, by which the fuperintendant of the finances of the
United States is enabled to fee all their operations, of
course from the deep interest which government mult
have in the integrity of their conduct, he will take
care, that they do not swell their paper circulation
beyond the reasonable bounds, which their capital
will jultify.
The sixth, feventb, eighth and tenth articles, con
tain the outlines of the civil government of the cor
poration after it (hall have been formed, as the hold
ers will not only be numerous but be scattered through
this country, and perhaps some of them reside in Eu
rope, it will be impossible forthem to manage in per
son, their own interests : the common doctrine of re
presentation, therefore, becomes necessary: how pro
perly that doctrine is applied, is submitted to the
consideration of those who may chufe to become con
cerned. In confidence, however, that they will be
convinced, proper care is taken of individual inte
rests as well as of the general concern.
The seventeenth article is framed according to cur
present situation, and what is conceived to be the
disposition of mens minds to pursue the publick in
terest : it time and circumstances shall, by rendering;
the duties more laborious, or from any other cause,
require an alteration, the means of making it are pro
vided for.
The Congress have entered so fully into the force
of this reasoning, as wifely to provide by the third re
solution against attempts, which private persons might
make of a similar nature, and with equal propriety
have extended the rettriftion only, during the conti
nuance of the war, leaving to a future period the
provisions which may then become necessary.
The fourteenth and fifteenth articles contain cau
tionary provisions, equally beneficial to the corpora
tion and to the publick at large—Provisions, which,
are certainly founded in the most evident justice— For,
however proper it may be, to mingle all possible mild,
nets in the criminal law of a country ; it cannot ad
mit of a doubt, that the flagarant breach of the great
est publick trusts, ought to receive the extiemeft pu
nishments, which can be inflicted by human laws.
To ask the end, which it is proposed to answer by
this institution of a Bank, is merely to call the pub
lick attention to the situation of our affairs. A de
preciating paper currency has unhappily been the
source of infinite private mifehief, numberless frauds
and the greatest distress—the national calamities have
moved with an equal pace —and tlie publick credit
has received the deepest injury. This is a circum
stance, so unusual in republican governments, that
we may boldly affirm, it cannot continue one mo
ment, after the several legislatures shall have deter
mined to take those vigorous and effectual measures,
to which the publick voice now loudly commands
their attention. In the mean-time, the exigencies
of the United States require an anticipation of our
revenues, while at the fame time, there is not
such confidence established, as will call out for that.
The twelfth article is intended to give, on the part
of government, that credit to Bank notes which the
interest and convenience of individuals will naturally
lead them to give in their turn. It is intended that
the government (hall derive advantages from this in-
Ritution; government therefore (hould support it:
not indeed by attempts to compel the acceptance of
Bank notes; this would be equally unnecessary and
unjust, but merely by receiving a medium, the value
of which is unqucftionable.
1 he fourteenth article contains that common pro
vision against counterfeits, which the villany of a part
of mankind has mpft unhappily compelled all govern
ments to make in the like cases.
To those acquainted with the fubjed—lt is unne
cessary to observe, that when the credit of a Bank is
fully established, and it is known to possess consider
able funds, the notes will not only have an equal cur
rency with gold and silver, but even be preferred to
those precious metals. Thele notes are more port
able, they are not like hard money, liable to be clip,
ped, or otherwise fraudulently reduced ; the care tak
en by bankers, for their own fake<, and the private
checks they use and continually vary, provide much
more effectually against counterfeits, than can be done
by any kind of carriage, and the certainty of receiv
ing gold and silver on demand, takes away the possi
bility of depreciation.