The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1815-02-08
ATl6SAL BANK BILL, I

hxf. Coles, thQ REooIdcnt's Secretary, re-
tufoed tho bill ",lo Incorporate tho subscri-
bsrs ~ Inc Bank q the United States Of A.
W&r|fa, vlfh the Following {
wv \. ~ MESSAGE
AZ .<S>sdt9 cf az, UysSfed Ssdfes.
xxavine testowed on fh5bill, entitled I" An
\. @et g incorpo the subScfibers 10 the bank
s.5!s,ihe ~, United States or America" that full
eIderation which il due to the great inn
P0seancc Of the subject and dictated by the
ErcePoct which I fcelfor the two houses Of
4 Congress, sm constrained, by deep and
4oiemn co1viction, that the bill ought not to
bccomc law, TO return il to the Senate, in
which II originated with my objections 10 the
same.
Waving the question Of the constitutional
authority Of the Legislature to establish an
incorporated bank, ss being prccluded, in my
judgement, by repeated rccogniiions, under
varied circumstances, of the validity of such
an institdtion, in acts Of the Legislative, exec
utivc, and judicial branches of tho govern.
meht accompanied by indications, IN differ
eht modes, of concurrence of the general
wiIi OF the nation tho proposed bank does
not appear to be calculated to answerthe pur-
poses Of reviving the public credit, of~pro-
vIding national medium of circulation, and
OF aiding the treasury by facilitating the in-
dSpeusable ahticipations Of the revenue, and
~ ahordihg to the public moro 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
certain proportion Of each OF Whichevcry sub
scribcr is to furnish himself.
Y, The amount of tho stock to be subscribed
will not, il is believed, be sufficient to pro.
duces in favor OF the public credit, any con-
siderable or lasting elevation of the market
price, whilst this may DC occasionally deprcs-
sed By the bank itself, If it should carry into
the market the allowed proportion OF It's cap
ital consisting of public stock, in order to
!. procure specie, which i may fnd its account
in procuring, with some sacrifice OF. that part
Of It's capital.
Nor win any adequate advantage arise to
the public credit from the subscription of
Treasury Notes. The actual issue of those
notes nearly equals, at present, aud will soon
exceed the amount TO be subscribed 10 the
bank. The direct effect Of this operation is
: simply to convert fifteen millions Of six per
+. cent stock, with the collateral effect of pro-
moting an additional demand for Treasury
Notes, beyond what might be Negotiable.
s.. Public credit might indeed be expected TO
adcrivo advantage from the establishment of u
snational bank, without regard TO the forrna.
tion of its capital, If tho full aid and cooper.
alton Of the institution were secured to the
government during the war, and during the
period Of It's fiscal embarrassment--But the
bank proposed will be free from all legal OBJ
legation to cooperate with the public mca-
surcs j and whatever might be tho patriotic
disposition Of its directors to contribute TO
the removal Of these embarrassmcnts, and to
insigorate the prosecution os the war, fidelity
20 the pecuniAry and general interest of the
Institution, according TO thoir estlmate of it,
might oblige them to decliue connection of
their operation with those Of the national trea
sury, during the continuance of the war and
the difficulties incident to II. Temporary
sacrifices Of interest, though overbalanced by
the future and permanent profits Of the char
ter, not being reputable Of right ia behalf Of
the public, might not be gratuilously made J;
and the bank would reap the full benefit of
eho grant, whilst the public would lose the
equivalent expected from il. For It must be
kept in view, that the solo inducenient to
such grant, on the part Of the public, would
be the prospect of substantial aids TO its Pc
cuniary uieahs at the present crisis, and dur
ing the sequel Of the war. Il is evident that
tho stock Of the bank will, on the return of
peace, If not sooner, rise in the market to a
value which, il the bank were established in
period Of peace, would authorize and OBJ.
tain for tho public q bonus to q very largo q
mount, Ia lieu Of such bonus tho govern
ment is fairly entitled to, and ought not to re.
linquish orr risk, tho necdful services of the
bank, under the pressing circumstances of war.
2. Tho bank as proposed to be constituted,
cannot Be relied on during the war, to provide
. circulating medium, nor to furnish loans,
Or anticipatioHs Of the public revsnue.
Without medium, the taxes cannot DC
collected and in the absence Of specie, the
medium understood to BE- the best substitute,
js that Of notes issued BY national bank
The proposed bank will commencs and con-
duct its operations, under an obligation 10
pay its notes In specie, or be subject 10 the