Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1831-12-22

may pleasure materially njure tho currency Of the
vcra states Its directors being empowered by the char
ter to establish many branches in any Of the states,
may he deemed cxpcdient, with without their
sent, have awaited themselves Of this privilege, by csta
bshing offices OF discount and deposte in all of the
mercial cities OF the Union. Each Office brazDh
comes with very decided advantage into immediate
petition with the banks by which it is surrounded
This advantage results chiefly from three Its
copalty of Attending greater facilities for exchange ID
The extensive circulation of its bills 3d. Its agen
CIV collecting the revenue of the General Government
Firs Each b,anch being nearly related and fully
credited by every other member Of thu Smy,
readily supply drafts on any city IN the Unhe,i States
For purposes Of exchange therefore merchants will
probably have recourse TO ten than to ony of their
state institutions, whose bills nevertheless almost inva
nably paid tor the drafts purchased All the bills Of
other banks thus received, of Withdrawn from
circulation and kept in reserve TO be presented for re-
dcmpon whenever convenience caprice may direct.
And although by courtesy transfer OF foreign funds is
sometimes accepted in payment yet is perfectly compe-
tent for the bank To defend specie payment and obi
gaory the other 10 make il. Ii is easy con-
ceivc the oppression to which the banks NAV be thus
subjected, aud if your committee greatly err many
oil them could sustain this view Of the subject by refer
cncc to their own experience The argument may be
enforced by supposng OF unusual in
commercial transactions. Savannah merchant wishing
to remit money I'm payment OF debt New York has his
for thousand dollars discounted i'm the bank of the
State OF Georgia. With the funds thus provided he pur-
cha:es from the branch Bank OF the United States,
at savannah, check the branch i'm New York,
Which inlly answers ;', his purpose Within one week
chased are presented by the branch bank of the u.
States TO the bank issuing them, and specie dcman-
Died in payment. Thus before the note, discounted by the
latter for the accommodation the Savannah merchant
comes due, she will have paid out for her bills
but gold silver COIN She will have been forced TO
dsbursc coin upon the faith OF which, peraps three
times the amount oil paper issued by the
pectcd and premature return of bills which have
thrice counted since their departure 3D. There great
advantage 10 those branches from the crcula
l1tion oil their bills An example will illustrate the idea
The western traders, who supply market with pork
horses and other articles, when about leave the State
possess themselves of the United States money in crca
on or II enough cannot he collected, purchase from
the Bank ITSELF and transport TO their respective homes
Thus by reason OF its general currency il il RENTED to
The North and East in payment of debts No doubt being
entertained of its entire sounncs may be continued
long in circulation alta great distance ow the Bank which
issued 1t. Ordinary commercial transactions would
give II homcward direction in much less time, however,
the bank that issued il will have received in stead bills
OF our own banks upon which she either operate pro-
htaby or which she may into specie pleasure
TO the great oppression of the latter and there mode
III winch TINS oppression can he successfully resisted.
Experience has conclusvcy proven that the u States
bank bills do not acquire general currency within any
satcthcy are intended Tor wider spherea sphere i'm
which minor banks exercise no control. Sd. They
derive great advantages from their agency collecting the
revenue of the General Government All custom house
bonds and other evidences Of debt belonging TO the Gen
crai Government, deposited i'm the mother bank or
some of its branches their locality NAV determine for
cohccioh and payment be enforced either i'm their
own bills or in specie The great difficulty that always
existed and particularly in the Southern States in procur
ing these bills frequently puts in their power demand
oil debtors specie payments. And how are individuals TO
obtain sufficient amount OF gold and silver to meet
collect all the bills OF local banks within their reach and
draw specie from their vaults This would be unneces-
sary oppression but nevertheless is such may and
probably VIII be pracscd those institutions less limited
in resources and created by authority of States
From all these causes, is very evident your
mtcc That they are in subsection arbitrary power
which may crush them in the very infancy of their corpo
rate existence The States must of necessity either es
tablsh banks of their own they must depend upon the
branches of the United bank for SUPPLYING them
with paper currency II it be right and proper for them
TO establish banks OF their il is certainly correct that
to nnrlt
lection But this they do ctfectally so long as
there similar institution having infinitely greater re-
sources within their limits, and wholly independent of
their authority To rely upon such an institution for
paper mediun Tor commercial facilities would be mani
testify unsafe and mpolc because was forced upon
mem without Their consent, it may be suddenly with
drawn, whether they be willing unwilling nd hence
would result Immediate s'aenation of business derangc
ment OF commercial affairs IL is certainly contrary TO all
Just conceptions OF state sovereignty that powerful mo-
cd institution should be established within the jurisdic-
uohai units oil any State without her consent,
Quoted Tree from her restraint is in effect placing npor
tant public interests i'm subsection within and CAPRICE of
the few individuals whom its direction NAV be entrusted
mat provision of the charter which prohibits the taking of
more than three directors from one State does not Sc
cure 10 the States any control over the affairs of bank
subsequent section destroys the little influence which is thus
apparently given TO parts of the Union by MAKING
seven directors quorum do business. Thus the five
directors appointed on the part of the General Govern
'neh,' ana VINO are not chosen with reference to their
places oil residence, together with the three apnontcd b
he STOCKHOLDERS from the State in which the bank
IL iocacd may AT any time control its operations. What
security then have the members of the cnfder,
cy, mat their interest will he properly respected in
board so organized! Again; it will denied that So
Vcregn state should have the power of imposing tax on
All oil Inc productive capital, bcncicaly employed under
the protection of her laws. The of Georgia may
and does tax the banks chartered by herself; but this
creature OF higher power above the operation of her
laws IL IS impotic, 1t is wrong in principle that the en-
PRISE oil her citizens should contribute the s,Ipport of
weahy corporation, which, so far from yielding her re-
venue actually Expresses and mpoverishes similar ns-
uons which are compelled pay their mite into the Trca
sury IL Is worthy ofrcmark shat this bank has failed 70
accomplish one object anticipated by the States The adj
vocacs oil lis incorporation predicted that would equal
ne exchange throughout the Union but no such GOOD has
resulted. o. ~
But there is another view of the subject more impor
tnt 10 inc SatcS and which should unite them all in, ON
poion TO this ovcr-grOwn child of the Genera, Govern
tnent our committee believe that il il s,scenblc Of
being made powerful and dangerous political engine
mere arc thoSc who question whether men CASUALLY |
thrown together in the direction of that Bank could or
woud unite III any political project But il should be re-
membered that community of interest superinduces com
uy OF ieeng and OF principle and that political pow
or IS always desirable because il any time confer
Pecuniary cmoument. Danger however is NOT so much
To be aPPrchended from sinister movement ON tbc mart
"e directors generally as from the improper use which
corrupt administration of the General Government NAV
make oil The institution. Recurring one feature of the
charer already noticed il is manifest that the directors
appointed on the part of the General Governments may
anu douotiesS VIII often constitute majority of the hoard
assembled TO deliberate upon the affairs the bank-Itis
very cear mat on such occasions, measure desired
by the administration, could be carried into inmadi,
ccuIon be asked what additional power could be
given by this absolute control the ready onsynr -
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