Daily Richmond Whig. [volume] (Richmond, Va.) 1828-1831, 1830-05-01

uoyernment and the State Banks would be excccd. 1
ingly dangerous to the purity Of BOTH While tbe,c
IL National Bank, bound by its charter to perf,rm
CERTAIN stipulated duties, and entitled To receive tho
To'cinnhcht depoSites as n compensation, fixed by
inc law creating the charter and only TO be forfeited
ny tue failure To perform those duties there is moth
ing IN the connexion at all incU:Isstent with tho
independence OF the bank aud the purity of the Go
Scrnineut' Inc country has deep interest that tho
oanN SHOULD malntaIn specie payments, and the Go
Ncrheht an additional interest that IL should keen
the public funds safely, and transfer them FREQ of OK
Pcnse' wherever they muy be wanted. Thc Govern.
mch', therefore, has no power over the bank, hut
the sanitary power Of enforcing n compliance with
the terms OF It's charter Every thing is fixed by
the law, and nothing LEFT TO arbitrary discretion
II is true that the Secretary OF tho Treasury. with
Oc sanction OF congress, would have the power to
prevent inc bank from using its power uriustv and
opprcssivcy, and to punish any attempt on tho onrt
oi the Directors, to bring the pecunarv influences OF
INC institution To bear upon the politics of the coun-
try Oy Withdrawing the Government depositcs from
me Offending branches. But this power would not
be lightly exercised by the Treasury as its exercise
would necessarily be subject TO be reviewed by Con
grcss. 1t Is, in its nature, n sautary corrective
creating no undue dependence on the part of the
bank. i " "
But the state Of things would be widely different.
there was no National Bank, and il was left To the
ot The Secretary Of the Treasury to sclec,
,eingc1' banks IN which the government lepostcs
shocJih he made. All the State banks would IN that
case be competitors for tho favor of the Treasury.
ana no one, who will duly consider the nature of this
SORT o' patronage, can fail 10 perceive that n the
names OF an ambitious man, not possessed of perfect
purity and unhendmg integrity, il wo,fS be imminent
y dangerous to tho public liberty. The State banks
would enter the lists Of political controversy with a
v'ew to obtain this patronagc and very little sagacity
Is required TO ocsee, that If there should ever hap
pen to be an administration disposed 10 use i,s
age to pcrpctuae its power the public funds yyonl1
DC put IN jeopardy by being deposited in banks un
worthy OF confidence, and the npSt extensive cor
ruption brought TO bear upon the elections throurh
out the Union. 4 state Of thnrs more adverse IN
IAe purify OF the governmental power more liable
10 DC aOuscd--can scarcely be imagined If five
millions OF dollars were annually placed in the hands
OF inc secretary OF the Treasury to be distributed at
his discretion, Tor the purposes of internal improve
meil'' II would not invest him with more dangerous
and corruDling power %
In conneNion with this branch of the subject the
comm ttce will briefly examine the grounds of n com
PANT sometimes made against the Bank of the Uni
Tea STATES II Is alleged that this bank avuilinr il,
sen OF the government dcpostcs. CONSISTING in some
places principally of local paper, makes heavy and ey
cessiVe drafts the local banks for specie and TINS
Cope.S them To curtal their discounts to the rtcat
INJURY OF the community. In the first place it is TO
oe remarked, that one OF the highest duties of the
oahR-the great object for which 1t was established
10 prevent the excessive issues of local paper:
ana 'his duty can only be performed, by enforcing
upon inc State banks the payment of specie for any
excess IN their issues. But the committee are indn-
ced 10 believe, that this complaint is PRINCIPALLY ow-
g so for rs 1t now exists to the fact that the one
ralons OF the Federal Treasury are mistaken for The
operations OF tho bank because the bank is the agent
oy whom those operations are performed. This IN
stuon receives the government dcposites in the pa
per CT the local bunks certainly in spirit Of host-
lty TO those banks On the contrary it tends TO give
them credit and is designed to have that effect. But
the bank OF the United States is not only bound 10
government III local paper, UuJ transfer the fund.
to any part OF the Union where they may be required
.Otft hpa y,,lt 81 ~
eminent collects annually, at the Custom House in
Charleston, one million OF dollars in local bank not es
and dlsburscs in South Carolina only one hundred
thousand II would result from this that the govern
ment would have nine thousand dollars OF loca bank
paper deposited in the Charleston branch which the
bank would he bound by it's charter and for tho ne.
iional benefit, 10 transfer crhaps 10 Washnnton or
Norfolk. AS this paper would not answer the pur-
poses OF the government n those places, the baDL
would be, of course, compelled TO nrovide specie, OF
DIS that will command specie at those places II is
obvious then that II is the inequality in the colec.
non ard disbursement of the that produces
me evil In question. IF all tho revenue collected III
Charleston were discussed in the State no irauqbts
would be made upon the local banks for specie The
Bank of the United States so far from bcinr obnoy.
ous 10 any complaint on this score, has greatly mt-
glco hcactlon oithe Treasury upon the local banks
W means OF The liberal arrangements which it's arnc
capital and numerous branches have enabled il to
make with them. The degree in which that institu-
ton has reduced the rne Of exchange NAV be fni-v
assumed as that III which IL has mitigatcd the action
OF the Treasury upon the State Banks. If, for cx-
ample there existed no national bank, and the depos-
ITS ofthe revenue collected in Charleston were made
IN one OF the local banks, what would be the effect
transferring annually, nnc hundred Thousand dollar rs
TO Washington or Norfolk? The local banks having
no branches at either oose Places inst cad of trans
hitting droughs, as IS now generally done would be
compelled to transmit specie. The bank in which
The government dcposltes were made, would be con-
s.cqnenty under the necessity Of demanding specie
IRON oil the other banks in manner and TO an OK.
tent much more oppressive than any thing that can
be imputed to the bank Of che United States IT, Ia
AVOID these specie draughts, the local banks should
purchase bills on Washington or Norfolk thew woulf
probably cost five or six per cent even in oerablc
state OF the currency which would be a loss to the
banks almost to the full extent of the premium
TO n CONTINUED
DUETS, AIRS, &c.
HOLIINS q co harn rnnniunh n G,r,hnr o.,.