Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1830-05-04

anu This duty can only De porfOrmeG, Dy enforcing
upon the State banks the payment of specie for any
excess IN their issues. But the committee indu
ced to believe that this complaint is principally ow-
ing, so far It exists, to the fact, that the opc
raons of the Federal Treasury mistaken fer the
operations Of the bank because the bank is the agent
W whom those operations performed. This III
sttutlon receives the government depoSes IN the
per OF the local banks, certainly in spirit ofhos,
ty to those banks. On the contrary, 1t tends TO give
them credit, and is designed to have that effect. But
the bank of the United States is not only bound Ia
Fay In specie, or its bills, what 1t receives for the
government in local paper, but to transfer the fund:
to any past OF the Union where they may be required
tor disbursement. Let it be assumed that the Gov
ernmeut collects annually, at the Custom House In
Charleston, million of dollars in local bank notes
and dlsburses in South Carolina only one hundred
thousand it would result from this that the govern
nent would have nine thousand dollars of local bank
paper deposited in the Charleston branch, which the
bank would be bound by its charter, and for the ~
tlonal benefit, to transfer perhaps to Washington or
Norfolk. AS this paper would not answer the pur-
poses of the government at those places the bank
would be, of course compelled to provide Specie
bills that viii command specie st those places. 1t is
obvious, then, that is the inequality III the colec-
ton ard disbursement of the that produces
the evil in question. If all the revenue collected IN
Charleston disbursed in the State, draughts
would be made upon the local banks for specie The
Bank of the United States, so far from being obnoY-
lous to any complaint this score, has greatly mt
gated the ofthe Treasury upon the local banks
by means of the liberal arrangements which its large
capital and numerous branches have enabled it to
mako with them. The degree in which that institu-
ton has reduced the rate or exchange may be fairly
assumed that in which it has ni,igated the action
of the Treasury upon tue State Banks. II, for ex-
AMPLE there existed no national bank, and the depos-
its ofthe revenue collected in Charleston were made
IN of the local banks what would be the effect of
transferring annually nine hundred thousand dollars
tn prto Orf,l lNo Al b,,;,
branches at either OF those places instead of trans
uniting draughts. as generally done, would be
compelled TO transmit specie The bank IN which
the government deposites were made, would be con-
sequentiy under the necessity of demanding specie
from all the other banks, in manner and to an ex-
tent much more oppressive than any thing that
be imputed to tile bank of The United States If.to
avoid these specie draughts, the local banks should
purchase bills on Washington Norfolk, they would
probably cost i've rsX per cent in olerable
state of the currency, which would be loss to the
banks almost TO the full extent of the premium.
Although the expedieucy of renewing the charter
OF the present bank is not q question submitted
tor the decision of Congress- the committee consider
SO far involved in the matter referred to them -as
to render it their duty to present some considerations
bearing on that question, in addition to what they
have said on the general eXpediency of maintaining
such an institution. If national bank, similar 10
the present, be a necessary and proper agtnt for
the accomplishment of the great purposes HERETOFORE
indicated, the only remaining question woui seem
to be, whether the charter of the present sockhold-
ers should be renewed, or new set of stockholders
incorporated.
In considering this question, Congress will, of
course be governed in some degree by the terms on
which the present. Stockholders will agree to accept
renewal of their charter But, as the committee
luve satisfactory reasons for believing that terms
erninently advantageous to the Government can be
obtained, they will proceed to other inquiries.
What then, would be the effect of refusing to renew
the present charter? And, in the first place, what
are the inducements for pursuing that course1
1t Is sometimes aedged that the present stock
holders are large capitalists, and as the stock of the
bank IS some % per cent above par that renewal
of the charter would be equivalent to grant to them
OF 20 per CENT upon their capital. II is true that
small proportion of the capital of the company be-
longs to very wealthy men. Something more than
two millions of that owned III the United States be-
longs to persons holding upwards of one hundred
thousand dollars EACH II is also true that foreign
ers own seven millions, one-ifth of the capital.
But the other hand it is to be remarked tina. the
Government, in trust for the people of the United
States holds Millions that persons owning less
than five thousand dollars each, hold four millions six
hundred and eghty-two thousand; and that persons
owning between FIVE and ten thousand dollars each
hold upwards of three millions. It is also wor-
| thy Of remark, that very considerable portion
of the stock very nearly six millions is held by trus.
tees and guardians, for the use of femsIes and
OF the twenty eight millions of the stock which is
owned by individuals, only three millions fur hun.
dred and fftythree thousand is now held by the orr
ginal subscribers All the rest has been purchased
at the market prices-a large portion of it probably,
when those prices were higher than 1t present.
Most of the investments msde by wills, and deeds,
and DEGREES in equity, for the use of females and mi
nors, believed to have been made when the stock
was greatly above par. From this brief analysis, it
will appear that there is nothing in The character or
situation of the stockholders which should make it
desirable to deprive them ofhe advantage which they
have fairly gained, by application IF their capital
to purposes highly beneficial, the committee have
attempted to shew to the government and people of
the United States. If foreigners own seven millions
Of the stock of the bank, our own government owns
US much if wealthy men own more than two millions,
men in moderate circumstances own between seven
and eight millions, and widows, Orphans and nstitu-
tons devoted to charitable and other purposes own
nearly six millions.
But the objection that the stock is owned by men
of large capital would apply with equal, if not great
er force, to any bank that could be organized. In
the very nature Of things, men who have large sur
plus capitals the principal subscribers the first
organization of bank. Farmers and planters,
merchants and manufacturers, having active en-
ploymcDt of their capitals, do not choose to be the