Republican gazette — Concord, N.H., 1801-02-12 00:00:00, page 1

Os the New Bank.
D, This being a fubjed of high importance to
me free citizens at large, as involving the ques
tion (for by the late a& of curlcgifl^ure it is
made a qucftion) of the right of ac„irt*g and
USING property, we give the faceting com
ments in a large, fair type.
Frm& REPUBLICAN LEDGER.
3TCC
A STOCKHOLDER in the LATE
Newhampfhire UNION BANK,
to his FALLOW CITIZENS.
NO event, perhaps, has ever present
ed itfelf to public view in this Bate
since the eftabliihment of our present
form of government, which in its confe
quentes hai led to measures so fruitful
in developing the felfifh and oppressive
disposition of the human heart, as the in
stitution of the Newhampshire Union
Bank.; to pass over in silence the re
markable proceedings, either of a pub
lic or private nature, to which it has giv
en rife; to suppress a manly indignation
at that spirit of avarice & revenge which
would deprive us of our property and
our rights, would betray a cowardly sub
mission, degrading to the charader of a
free-born American: With plainnef:%
therefore, and unembellished truth, I
shall attempt to lay before the public a
brief narrative of fads, with such obser
vations from time to time as may ari'e
from theTOjea, that my fellow citizens
may realize by what tenure they hold
their most invaluable privileges, how ea
sy it is for the passions of men to over
leap the bounds of reason and justice,
and how feeble the barrier formed by
the best of Constitutions, when private
interest arid party spirit conspire to break
it down.
The Bank which had been established
in Portsmouth, and the onl, one in New
hampjhire, began at firft with a capital of
aoout sixty thousand, and was afterwards
increased to about eighty thousand dol
lars; from several years experience it
had been found that the demands of
those who had occasion to borrow, could
not be supplied, and that many citizens
of Portsmouth and its vicinity were driv
en to banks of another state for loans,
which through disability or disinclina
tion of the Directors, could not be ob
tained in their own. Whether the man
agers of the bank and their favorites,
were partial in their indulgencies, as was
the prevailing opinion, or whether the
capital of their bank was really infuffi
cient, seemed quite immaterial, it was
certain an evil existed that required a
remedy; this was attempted by setting
on foot, in the spring of 1799, a fubferip
tion for the eftabliihment of a second
bank ; in June following articles of as.
fociation were signed, accommodations
and materials were provided for carry
ing on the business, and early in Octo
ber the bills of the Newhampfhire Union
Bank werein circulation. Finding that
jealousies had arisen in the minds of the
directors of the Newhampfhire bank;
that they considered the inflitution of a
second bank as an a& of hostility and op
position to theirs ; the directors of the
by Elijah Russell—C 0 NCO RD, [BeWmpsfce] THURSDAY, February 12, 1801 No. 2—Vot. I.
REPUBLICAN GAZETTE.
Newhampfhire Union Bank, from a de
sire of cultivating that degree of harmo
ny indispensably necessary to the easy &
profitable conducing the business of
both, thought proper to seize the earliefl
opportunity to remove those unfavora
ble impressions, and accordingly address
ed them in a refpe&bl manner,, (as was
conceived) by letter on the fubjed ; dis
claiming in the most positive manner,
the intentions ascribed to them,expreff
ing an opinion that the increased state of
commerce would afford ample employ
ment for the capitals of both banks, and
proposing terms of amity and a mutual
exchange of friendly offices. This let
ter, however, though breathing nothing
but friendship and goodwill, was treated
with pointed contempt. Ignorant at that
time of the high prerogatives assumed by
those gentlemen, and not fufpe&ing their
claim to an exclusive right of acquiring
property by loaning money on banking
principles in Newhampfhire, it was dif
ficult to account for this outrage on com
mon decency and politeness ; but it will
readily be concluded that as no reply
was made to this amicable overture, no
further advances could with propriety be
made on our part,
Sensible of the disadvantages attending
the prosecution of business cf this kind
in , an unincorporated flatland desirous
of rendering their infWtution as public
and ufeful as poffi'ole ; the Stockholders
petitioned the General Court, at their
next session, (in December) for an a&
of incorporation, which the Stockholders
of the Newhampfhire Bank were per
mitted to oppof?, by their memorial,
fraught with no (mail degree of arro
gance and indecency ; the petition and
memorial were referred to a committee,
a majority of whom, unfortunately for
the petitioners, were previously known
to be in the interest of the old bank ; it
was therefore expected their report
would be unfavorable to the petitioners ;
but to the astonishment of every rational
and candid mind, they not only reported
against the petition, but in favor of an
ad for restraining ALL unincorporated
banking associations ! This report was
taken up in the house of representatives
and divided ; on the question relative to
the incorporation, a considerable major
ity voted in favor of the report; to which
they were led, as many of them after
wards expressed, by the consideration
that the fubje& was new to them, and
that they wished further time to confider
it, before they put it beyond their reach
—such precaution,in those unacquainted
with the banking business, appeared, to
the petitioners, not unreasonable, and
here they would have cheerfully rested,
waiting patiently until another session of
the General Court, that the public might
have Sufficient experence on the fubje&,
and the legislature be more competent
to determine on the propriety of grant
ing the prayer of the petition. The
second part of the report, viz. “ that
some a& ought to pass for restraining un
incorporated banking companies," Was
also taken up, and rejeded. And there
LIBERTY and t ho CONSTITUTION.
the bufmefs should have ended ; but in
terest, alas ! that too powerful incentive
to injustice and oppression, would not
fuffer it so to be! Ever, branch of the
Legidature furnifhed its proportion of
Stockholders in the Old Bank, whose
extravagant income was in danger of
some diminution ; an ad most arbitrary
and oppressive, and (in many parts at
least) unconstitutionally severe, calculat
ed not merely to prevent a multiplica
tion of banking companies in future, as
was jefuitically pretended, but for the
particular design of crushing, at a Single
blow, that which had been legally and
rightfully instituted, was prepared and
read in the Senate, and became publicly
known on Thursday, but was detained
till the next week on Tuefdav, before it
made its appearance in the house of rep
resentatives, this unusual time was allow
ed, as was the general opinion, that there
might be the fulleft opportunity to pre
pare that body for its reception. If that
opinion was just, and it is presumed it
does not admit of a doubt, THE PEO
PLE of NEWHAMPSHIRE WILL
SEETHE NECESSITY of GUARD
ING in FUTURE AGAINST such
extraordinary condu& in a dignified
branch of their Legislature.
4 [Let every one real.]
The interval thus allowed, did not pass
unimproved ; for, in addition to those
noted characters, whose unwelcome visits
constantly infeft the fittings of the Gen
eral Court, men of some refpe&ability
and influence were summoned from va
rious parts of the state to exert themselves
in this important affair, and in some in
stances, under a promise of reimburfment
of their expenses at least ; some ofwhom,
indeed, when made more fully to under
stand the business in which they were
about to be employed, rejected every
overture with disdain, and returned with
just indignation to their reflective homes
—others, less principled, were induced
to engage in the cause ; political preju
dices were excited, the satellites 'ofthe
Executive were incessant in addressing
the hopes and fears of men desirous of
procuring or retaining appointments, and
after five days expended in the most ag
onizing efforts, a majority was found in
the house of representatives in favor of
The Aft; an a& unexampled for severity
in the aerials of any free Government:
Tyranny and defpotifra alone can furnilh
a parallel. To give it some semblance
of moderation, provision was made for
the postponement of its operation till th^
firft day of August following. This was
introduced by iriere fubtilt, , as a bait for
the credulous and unwary, who were told
that this aft could not injure the bank
already in operation ; that the proprietors
would petition again in the June session,
and if so, would certainly be incorporat
ed before the a& could operate upon
them ; that this ad was necessary to pre
vent the multiplication of banks in future
and would tend only o that purpose. To
guard more effectually, however, against
a possibility of obtaining such incorpora
tion, a State Tax of twenty feyen thosfi