The enquirer. [volume] (Richmond, Va.) 1804-1815, 1815-02-04
IN SENATE.

Mr.. Coles, the Presidents Secretary re-
turned the bill "to incorporate tine subscri-
bers 20 the Bank Of the United States of a
merica, with the following message:
To TIE Senate 2t'the Z. States.
Having bestowed on the bill, entitled
" An act TO incorporate the subscribers TO
the bank of the u. States of America" tina;
full consideration which is due to the great
Importance Of the subject, and dictated by
the respect which ] feel for the two houses
OF Congress, am constrained, by a deep and
solemn conviction, that the bill ought not to
become law, to return it to the Ssnate. in
which 1t originated, with my objections to the
same.
Waving the question Of the constitutional
authority OF tue Legislature to establish an
Incorporated bank, as being precluded in my
Judgment, by repeated recognitions, under
VaIs eiTc;is.a;ces, af the validity "a sichIi
an institution, in the acts of the legislative,
executive, and judicial branches of the go
yernmcnt, accompanied by indications, in DIFF
ferent modes, of a Concurrence Of the gene
raj will OF the nations /; the proposed bank
does not appear to be calculated to answer
the purposes of reviying the public credit, OF
providing national medium of circulation
and OF aiding the treasury by facilitating thu
indispensable anticipation of the revenue, and
by atiording to the public more durable
loans
l. The capital of the bank is to be com
pounded of specie, Of public stock, and Of
Treasury Notes convertible into stock, with
a Certain proportion of each Of which every
subscriber is to furnish himself
The amount of the stock to be subscribed
will not, it is believed, be Sufficient to produce
m favor Of the public credit, any considerable
or lasting elevation of the market price.
whilst this may be occasionally depressed by
the bank itself, lift should carry into the mar
ket the allowed proportion Of it's capital con-
SistiNg of public stock, in order to procure
specie, which it may find its account in pro-
curing, with some sacrifice on that part of its
capital.
Nor will any adequate advantage arise to
the public credit from the subscription of
Treasury Notes. The actual issue Of these
notes nearly equals, at present, and will soon
exceed the amount TO be subscribed to the
bank. The direct effect OF this operation is
simply to Convert fifteen millions Of Treasu-
ry Notes into fifteen millions of six per cent
stock, with the collateral effect of promoting
an additional demand for Treasury Notes
beyond what might otherwise be necotia
bic
Public credit might indeed be expected to
derive advantage from the establishment of
national bank, without regard to the for
NATION OF It's capital, if the full ai1 and COO
peration of the institution were secured TO
the government during the war. and during
the period Of its fiscal embarrassment. But
the bank proposed will be free from all legal
oblig zion to cooperate with the public mea-
sures and whatever might be the patriotic
disposition OF its directors TO contribute 10
the removal Of those embarrassments, and
20 inYjgorate the prosecution of the war. f.
deity to the pecuniary and general interest
OF the institution, according to their esti-
mate OF it, might oblige them to decline a
connection of THAR operations with those Of
the national treasury, during the continuance
of the war and the difficulties incident TO il.
Temporary sacrifices Of interest, though o.
verbalanced by the future and permanent
profits Of the charter not being reouirablc of
right in behalf Of the public, might not be
gratut jusly made aud the bank would reap
the full benefit of the grant, whilst the pub
lie would lose the equivalent expected from
1t, For it must be kept in view, that the
sole inducement to such grant, on the part
OF the public, would be the prospect OF sub
stantial aids to its pecuniary means at Fthe
present crisis, AID daring the sequel of the
war. It's evident that the stock Of the bank
will on the return Of peace, if not sooner.
rise in the market % A value which, i. the
bank we're established in period &C peace.
would authorize and obtain for the public a
bonus to a very large amount. In lieu Of such
a bonus the government is fairly entitled to,
ard ought not to relinquish or risk, the need
tul services Of the bank, under the pressing
Of war.
3 The bank, as proposed to be constitu
tel, cannot be relied on during the war, 70
provide circulating medium, nor TO furnish
oans, or anticipations Of the public reye-
hue.
Withou. ae'iium, the taxes cannot he
collected and in the absence of specie, the
Medium understood to be the best substitute,