Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1821-12-24

ence in seventy years would amount TO
q sum equal to the whole capital Of the
Bank. 1t was true, that the charter
limited the duration Oftne Bank to thir
ty years; but it was equally true, that 1t
looked forward to renewal Gifts CHAR
ter, and would probably be able to ac-
complish its object.
Mr.. Little opposed the resolution. If
the gentleman from New York had
documents to prove the fact upon the
bank, it would be most proper to issue
a quo warranto, and summon the insti-
tuition to appear and show cause why its
violated charter should not be taken
from it. But, if such documents did
not exist, he could not, for one, feel
willing to leave this place to 60 as an
inquisitor to Philadelphia, to overhaul
the proceedings of that bank.
MIR. Smith of Md. had no objection a.
gainsl making inquiry into the subject.
He could not say particularly what mad
been the usages of the mother bank, but
with regard to the branches, he believed
it would be found that they had adopted
the same rules with regard to the caicu
latlon OF time, that had been uniformly a.
dopted py other banks throughout the
country.
Mr.. Tucker, Of Virginia. rose to inquire
OF the mover il he had other proof with
respect to the taking of greater interest
than six per cent. except such as grew Out
of the substitution Vi 500 days tor 800, IN
their calculations of annusi interest
Mr. Golden replied that ne had--tor he
also understood that they took the interest
of Ga days on loan Of 63 days But lie
supposed oil subordinate enquiries would
TALL under that OF the general character
which he had submitted aud he thought
the practice 10 which the gentleman fro
Marvland Mr.. Sm lth) had alluded, how
ever extensive it might be, Afforded no ex-
cuse to The Bank OF the United States, for
an obvious breach oil the law
Mr. Tucker reioined that. however cor
rect the principle might be, were il intro.
duced Tor the purpose of settling an in
choate practice, yet as an usage had been
created BY common chnsenl throughout
the Union, he dio not feel willing TO dis
turb it, 1t might create great confusion
anu alarm. He believed there were few,
if any banking institutions that did not vi
olate the literal construction OF their char
ters. Not only was this the case, in the
two instances to which the gentleman from
New York had referred, but also in re-.
| curing the interest IN advance. This
| was compound interest; but no law had
| forbidden it-and these usages had been
adopted, so lar as he was acquaiht.
ed, ny every bank in the Country -
| The people had acquIesced 10 them, and
cont,nsnts error jac't legem IL was pre-
scrIptfe law with which it was not per.
haps prudent TO Interfere. [, the Bank vi
the United States, 10 this particular, were
usurers, so were the State Banks; anu II
we undertake to settle the custom, the
Whole county will be put INTO commotion.
The excess which these nice calculations
created ware small! IN amount, and de ms.
n,mis non curat ie1.--1h he banks lend
their money at % days. As the year cun-
sists OF SOB days, the 5 odd days must be
| lost by the bank or the borrower, and il
las been generally admitted that the Irac-
] ilOR should be calculated in favor OF the
bank. In view Of all these considerations
he did not think il was expedient tor Con-
sress 10 IDterpose Oh the occasion.
| Mir. Randolph felt under obligation
to the gentlemen from New York, fol
bringing the subject in question under the
consideration of Congress. In his opinion
It was entitled to serious enquiry, nor did
he spprehend that the enquiry would pro.
! luce the effects which the gentleman " 10
had Just sat down MIR. Tucker) seemed t.
contemplate. The Congress OF the Unit.
ed States had nothing 10 do with state
oanks; but this Institution was within their
| special cognIzance. The difference cl
lime on which usurious interest was exact
ed was regarded as trIffe In the eYche.
| quer oil the gentleman over the way, Mr..
Iuckerl 1t nigh be trIhe but to The PEG.
| pie vi the Uulied States it was no small a.
| mount. Once in ~ years there was thus
| exaCted trcm The people an amount equal
| 10 the whole extent OF ITS Capital, by this
body without soul. And because the sys.
| lem OF exlOrlion had extended, it must
therefore be cohtinued-and the general-
| ty OF the offence was TO ensure its impunl-
ty. In lanu that boosted of being 60
verned by laws, he hoped that such doc
trine would not be allowed 10 prevail. A
remedy ought TO be applied. An exemp-
lion. IN bis opinion shameful, was las,
year made in favor Of that bank, and he
hoped that this Congress would moi mani
test similar subserv ncy. Frauds oughl
not to be sanctioned by this House wns.
lher committed by ind, iduals OF by bodies
corporate. Mr.. r. disavowed any con-
nection with banking institutions, whether
national or territorial and with respect to
most of Them be believed it was true tia,
the less said the better.
Mr.. Little moved to amend the resolution
so es to refer II to the committee on the ju.
! dicia.y. The motion was negatived. and