Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1832-08-01

The bill TO "modify and continue'' the act en-
titled San act to incorporate the subscribers Of
the Bank of the United States" was presented to
me on the 4th OF July instant. Having consid
cred 1t with that solemn regard to the principles
ol the Constitution which the day was calculated
to inspire, and come to the conclusion that it ought
not to become law, herewith return it to the
Senate, in which it originated, with my objec-
tons.
A Bank of the United States is, in many re-
spects, convenient for the Government and USE
full to the people. Entertaining this opinion, and
deeply impressed with the belief that some of the
powers and privileges possessed by the existing
Bank are unauthorized by the Constitution, sub
versive of the rights of the States, and dangerous
to the liberties of the people, felt it my duty, a,
an early period of my administration, 10 call the
attention of Congress to the practicability cf or
ganizing an institution combining all its advan-
tages and obviating these objections. sincerely
regret that, in the act before me, can perceive
none of those notifications Of the Bank charter
which are necessary, in my opinion, to make it
compatible with justice, with sound policy, or with
the Constitution of our country.
The present corporate body, denominated the
President, Directors and Company of the Bank
of the u States, will have existed, at the time
1t enjoys an exclusive privilege of banking I'M
der the authority of the General Government, a
monopoly of its favor and support, and, as ne
cessary consequence, almost monopoly of the
foreign and domestic exchange. The powers,
privileges and favors bestowed upon it, in the ORR
ginal charter, by increasing the value of the stock
far above its par value, operated as gratuity of
many millions to the stockholders.
An apology may be found tor the failure to
guard against this result, in the consideration
that the effect of the original act of incorpora-
ton could not be certainly foreseen at the time of
its passage The act before me proposes another
gratuty to the holders of the same stock, and, in
MANY cases, to the same men, OF at least seven
millions MORE This donation finds no apology
in anv uncertainty as to the effect of the act. On
all hands it is conceded that its passage will in
crease at least twenty or thirty per cent. more,
the market price of the stock, subject to the pay
ment of the annuity of 100000 per year, secu-
red by the act; thus adding, in a moment, one
fourth to its par value 1t is not our own citizens
only who are to receive the bounty of our Gov
ernment. More than eight millions of the stock
of this Bank are held by foreigners. By this act,
the American Republic proposes virtually to
make them present of some millions of dollars
For these gratulies to foreigners, and to some of
our own opulent citizens, the act secures equiv
alent whatever. They are the certain gains of
the present stockholders under the operation of
this act, after making full allowance for the pay
ment of the bonus.
Every monopoly, and all exclusive privileges,
are granted at the expense of the public which
ought to receive fair equivalent. The many
millions which this act proposes to bestow on the
stockholders of the existing Bank, must come, d.
I'D; ont of the Of tho
American people. tits due to them therefore, if
their Government sell monopolies and exclusive
privileges, that they should at least exact for
them as much as they are worth in open market.
The value of the monopoly in this case may be
correctly ascertained The twenty eight millions
of stock would probably be at an advance OF fif-
ty per cent and command in market at least for
ty-two millions of dollars, subject to the payment
of the present bonus. The present value of the
monopoly, therefore, is seventeen millions of dol
lars, and this the act proposes to sell for three mil
lions, PAYABLE in fifteen annual insalments Of
100000 each.
1t is not conceivable how the present stockhol-
ders can have any claim to the special favor OF
the Government. The present corporation has
enioyed its monopoly during the period stipulated
in the original contract If we must have such
corporation, why should not tho Government sell
out the whole stock, and thus secure to the people
the full market value of the privileges grantedY
Whv should not Congress create and sell twenty
eight millions of stock, Incorporating the purcha-
sers with all the powers and privileges secured in
this act, and putting the premium upon the sales
into the Treasury?
But this act does not permit competition In the
purchase of this monopoly. 1t seems to be pre-
dictated on the erroneous idea, tina: the present
stockholders have prescrptive right, not only
to ths favor but to the bounty of Government. 1t
appears that more than fourth part of the stock
is held by foreigners, and the residue is held by
a few hundred Of our own citizens, chiefly of the
richest elias: for their benefit does this act ex-
clude the whole American people from COMPETE
ton in the purchase of this monopoly, and dis
pose of it for many millions less than it is worth.
This seems the less excusable, because some Of
our citizens, not now stockholders pe,itoned that
the door of competition might be opened, and Of
fered to take charter on terms much more favor
able to the government and country.
But this proposition, although made by men
whose aggregate wealth is believed to be equal
to all the private stock in the existing Bank, has
been sci aside, and the bounty of our Govern
ment is proposed to be again bestowed on the few
who have been fortunate enough to secure the
stock, and, at this moment WELD the power Of the