Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-04-17
81 $50
S2l3.9l7

If this statement be correct. and it is believed
TO be, then the Bank, lin pecunary point of
view,) has not been gamer: the United States
have, lit would appear) been amply paid for all
the advantages derived from the deposites oil their
funds in the Bank and IFS branches.
The Committee ask leave TO take a more ex-
| tensive view Of the subject, that it may be more
fully understood by Senators who have not par,c-
ularly turned their attention 10 the subject.
The Bank was chartered OH the 10th Of April,
1916; its capital thirty FIVE millions of dollars, of
which the United States were TO holl one-ftth, or
seyen millions. which $7,000.000 was to be paid
by deposite o! stock, paying an interest Of only
five per cent. The subscribers were bound TO
pay one-Quarter OF their subscription in specie
and the other three quarters in specie, or in stock
o! the United States, bearing an interest OF six
per cent, when the government made its pay
nent IN stock only, and that bearing an interest OF
one per cent. per annun less than that paid in by
individuals corporations The charter author-
lied the government 10 redeem the stock paid by
individuals at par, at any time it thought proper,
although such stock would not have been rcdeem-
able, until other such stocks should have become
payable. The object Of the subscribers in paying
with stock, above par at the time, was. chat bear
ing an interest, IL would enable the Bank to make
dividends until it could get into complete opera
ton. The subscribers were completely and quick
ly deprived Of that advantage for the act OF Con.
gress, dated Sd March, 1917, Immediately after
the Bank had commenced business, authorized
and directed the Commissioners Of the Sinking
Fund to redeem the public debt held by the Bank;
and they did so; by which the Bank suffered AN
actual loss OF S25l al, estimated at the then val
tie Of such stock in the market. (See document
d.
The exclusive privilege given to the bank was
highly important to that institution. Without the
security given by the charter, "that no other
bank should be established during its term" il is
not probable that sufficient number OF subscri-
bers could have been obtained. That provision
was also useful TO the nation it prevented all ap-
plicaton to Congress for other banks, and efTec-
tually prevented il from granting other charters
The example furnished by the States, show how
difficult il would have been TO have resisted such
applications.
What facilities does the bank give to the Trea-
sury as compensation for the exclusive privilege,
IL collects all the Custom house bonds ii receive
and keeps safe the receipts FOR public lands where
VERT has branch: 1t transfers the money
oil the nation from asy one par; OF the u
Dion,to any other, where il may he reuuired: il
| makes those transfers without any charge for a
difference OF exchange, which would be no little
| expense to the Treasury: tpays the public debt.
by which il is subjected 10 large drains OF
specie, highly injurious 10 its other operations, in
asmuch as those drains compel the bank TO lessen
its discounts. II is peculiarly so at the present
time, when the principal Of the public debt is pay
ing OF rapidly; nearly third thereof il owned
by foreigners who. finding II difficult 10 re invest
90 probably draw the specie for remittance in pre-
ference 70 remit in exchange at its present high
I iaIo' 'hS oauK also pays OH almost all the PEN
sioners, winch is saving, already shown, OF
nearly 10000 dollars per annum; and all those els
are performed by il free Of any charge whatever
10 the Treasury. IN addition, il is considered a
safe Geposic Tor the public funds, by which losses
similar TO those heretofore incurred by the depo.
site Of the public money in State banks 10 the
amount, Of million ofdOars, lscompieteiy avoided.
1t has not been deemed proper 10 include the
deposiies Of 1917 and 1918, in the average; they
were incidentally large, arising form variety O
causes, such as cannot happen again; one Of Their
was, the bank had agreed with the Treasury e
assume and account for the debts due by some o
tbe State banks TO the Treasury, which were i'm
Tc'lo'e'y charged q 80 fgnt, on which ccr'