Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1831-12-02
From tie NqtioaqL Ga.e.te.

4VGIlOHHI CEISeste.
The publication which we recently made, Of the
opinion Of the Circuit Court Of PENNSYLVANIA cstab
lishing the perfect legality of Branch drafts Of the
Bank of the United States, and the power OF the
Courts TO punish countcrteiters ofthcm, has led us
TO inquire INTO the nature OtEose drafts, which
have now the means of cx planning the entire Sd
tisfiCtiom, we are sure, OF all the community.
IL appears that there u doubt whether under
| the charter, bank notes, properly called, ought
TO be issued by the Bank without the signature OF
the President and Cashier. The right Of the Bank
20 issue notes no. signed by these officers, that is,
| tho right ofbinding itselfto pay none by NOES
signed by any persons duly autnQrizHdto sign them,
could not be questioned, but then there danger
that rigid construction ofthe clause against coun
tcrlciing would not apply TO such notes. and they
might perhaps be counterieed with impunity.
Their issue, therefore, though legal, might be At.
tended with danger to the community.
On the other hand, to conine the issues of the
Bank TO notes signed by the President and
Cashier, would be TO defeat the main pur-
pose for which the institution was creatcd-the
supply OF an adequate circulating medium. This
may be easily Ire presiding officer of Bank
with twenty-five branches who is mt Che same time
Commissioner of Loans and Pension Agent, finds
IN his own appropriate duties of supervision, daily
employment sufficient to occupy and exhaust the
most active mind and robust frame. TO those du-
ties is added the mechanical labor of signing his
name to some millions Of notes. The total amount
of notes in circulation Is about eighteen or nine
teen millions of dollars The wear aud tear of these
is so great III such extensive field OF circulation,
thai many millions become constantly unfit for fur
lher use and cancelled. From time to time
too, a particular plate is counterfed; and then the
whole impression must be withdrawn, and new
emission made from plate.
All this was TO be done by single individual
after his more urgent daily duties wcro finished
1t became, therefore, physically impossible to sup
ply the circulation. For instance, the circulation
is about 10 millions. If this officer were to sirn
500 notes duy-a large allowance considering his
other dutics-tor every day in the year, including
Sundays, oa take him nearly six years TO sirn
i've millions of dollars in five dollar notes, and be-
fore he reached the end Of the five millions, the
Grst three millions would be worn out and require
renewal. This, moreover, would be wholly useless
if it possible. There is no more security
against coUutcrfcting in one mans name than in
another; and there is great insecurity in this praC
tcc, because if Couutoriciters succeed i'll initiating
particular note, it is impossible to withdraw il
| from circulation, because the individual cannc
sign notes fast enough to replace those which hag.
/ been Counter4tit"d. Tho security - rot III thC
| name, for almost any countc-lcitcr copy any
namo with sufficient accuracy to deceive the gene
| raj observers who compose tho community. Th,
real security is tho excellence of the Workmanship
so that few artists initiate it-and then in the
! dIitgcnt pursuit and Punishment Of the counter.
fccrs. accordingly, considerable Bank in
Europe requires its notes 20 DO signed by the chief
officers. The Bank Of England had, for its one
| pound bank notes alone, no less than one hundred
| and thirty siguers.
Finding it impossible TO accomplish the object OF
t7 creation, the Directors Of the Eluk stated tho
! difficulty to CUngrCss--uud in the year S23 a
committee recommended the passage OF a law TO
authorize Che signature by Other officers. But no
bill was ever introduced nor s.sJ the report caSed
| up or acted upon in any way.
The subject was again presented i'm 1927, but ne
/ yer went beyond thc committee room. The Bank,
having done all IFS duty ~ submitting the fculty
! TO Congress then had 90 decide whether fho bust
ness OF the country should be suffered TO stagu.tc.
and itself become aDortirC.or whether it could find
an efficient rcIncdy for this defect among IFS other
| powers. Th.. readily found. The 1e,h Sec
/ ton g-alIM couatcrci'crs embraces The case OF
, couutcrteitjng any order check on Che said
| Bank or Corporation or any Cashier ercrcoE"-
! The checks ON ,nc Branches on the Parent Bank
arc then protected against forgery. and as coch
! Brauch you'd thus supply what wa. wanted bv
. TIC cO,nmaniy iu its ucigiborhood Inc necessary
/ amount would in this way be furnished, Of parcI
! which could not be CountcT'citcd. Many Of The
/ Brunchcg arc therefore authorized, in case then
customers want paper Of a small demonstration, Ia
give them these small drafts. This T. confined 40
The smaller circulation for III the notes Of LARGE
denomination continue Co DC signed cycl.-,vo',
by the President and Cashier Of the Parent nank
The advantages Of these GEdils arc-fr.t that N
this way the community can obtain what ,hcy car
obtain in no other way, small circulation ioivof
sally receivable throughout Che United Siates 60
second that Che ra,fy who asks for thcM IAN,