Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1822-01-22
Their the Bank of the United States had

was authorised 70 institute committee
to make such inquiry. He had been in
formed by good authority, that, from It's
first establishment to the present time,
the Bank had been in the habit of re-
curing, and receiving, greater interest
than six per cent. TO which it is limited
by the charter. The manner in which
this was done, was by miscalculation OF
time, giving to the year only 500 days,
instead OF sos. This might, at first, APP
pear TO be an uninlportant matter; but
i, would be found, on calculation, that,
upon the discounts made at that Bank,
the difference in seventy years would
amount to a sum equal 10 the whole
capital of the Bank- Ii was true, that
the charter limited the duration OF the
Bank to thirty years : but 1t was equally
true, that it looked forw ard to renewal
Of its charter, and would probably he
able to accomplish 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
QUO warranlo, and summon the nstitu-
ton to appear and show cause why its
violated charter should not be taken from
it. But, If such documents did not ex-
ist, he could not, Tor one, feel Wiling to
lsa9s this place 10 go as an inquisltor to
Pailadelphia, 10 overhaul the proceed
ings of tiiat bank.
Mr.. Smith, of Maryland, had no OBJ
lection against making inquiry into the
subject. He could net say particularly
what had been the usages OF the mother
bank, but, with regard to the branches,
he believed il would be found that they
mad adopted The same rules with regard
to the calculation OF time, that had been
uniformly adopted by other banks
throughout the country.
Mr.. Fucker, of VIRGINIA, rose to in
oujrs OF the mover if he had other proof
w,,b resosci to The taking of 4 greater
interest Than six, per cent. except such
as erew ont of the Substitution oil 500
layy for 365, IL their calculations Of an-
pnaI ic.erea,.
Mr. Golden replied that he tIrrd--ior
he also understood that they took the in
,erest of 81 DAYS en- lean for IS days
But he .uoposed all subordinate inqui-
.ies would fall under that Of the general
character which he had submitted, and
he thought the practice to whieA tho
gentleman from MARYLAND (Mr. Smith,
had alluded, however extensive i, might
be, afforded no excuse to the Bank ofthe
United States, for an obsious breach Of
the law.
Mr.. Ticker reioined that, however
correct tbe nrincinle MIGHT be. were il
introduced ,or The nur,ose Of settling an
inchoate rra.,ice. vet. as an usa~e had
been cr.g,ed by common consent
throughout the Unlon, he did nol ieeI
willing to disturb il. 1t might create
great confusion and alarm. He believ-
ed there were few, if any, bankinr insti-
tu.iors tina, did notsiolate the llfcral cons
slruciicn of their charters. Not only
was this the case, in the TWO instances to
which the gentlemen from New York
had referred, hut also IN requiring the
interest in advance. This was CONF
pound interest; but 10 law had forbid
den i.--and these nsages had been adopt
ed, SO far as he was acquainted, by every
bank in the country. The people had
aequiesced in them, and commnais error
facit legem. Il was prescrip,ive law
with which twas not peiha IS prudent 10
Interfere. II the Bank of the United
States in THE parjictl lar. we're ,lsurrpS.