Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-01-14

A"G -
price of its stock to nearly double the original
cost: l think to about elss for el00 sterling
That Bank has probably now. but not in its early
the advantage Of a larger aggregate
fund Of deposited money than the Bank OF the
United States hath. 1t possesses another advan'
taye,' which renders business and dividends more
stable and regular than those Of the latter. Whiie
the Bank Of England is wisely and faithfully con.
Quoted, it hath no cause to fear renewals Of the
charter upon reasonable terms; whereas that OF
the United States, be 1t conducted ever SO wisely
and advantaseously to the public. has been, mow
is, aud will probably continue to be. upon such
occasions, subject to the assaults Of factions, with
interests hostile to it's existence.
But the field Of circulation IN this country is
so extensive and rapidly increasing as, in that re-
spect, to give the United States Bank a very
profitable advantage over the other There is
nj Bank known to us, / believe, that can with per-
feet safety to itself, maintain a circulation COM
~parative to that Of the United States Bank, in
proportion to its capital; nor give so general and
extensive accommodation and facility to the com.
munity Of borrowers. The rate of interest, as
connected with this Bank, has been a subject IA
miliar to my reflection several years. have
expected that it would be, and am surprised that
it has not been touched by any one. SO far as
l know, either in Congress or the various publ
cations of the press regarding the Bank. 10 me
there doe. not appear sufficient reason why the
Bank of the United States cannot as well afford
to discount at S per cent. as the Bank OF Eng and
ever could do. In fact it has loaned money at
that rate. The Bank may not be expected to
make such offer for the renewal OF the charter;-
but if Congress dema nd such condition. | ven-
ture to predict that it will not be refused. AS
an in~ducement to its ready compliance on this es-
sential point. I ask leave to suggest that, ins cad of
the Go, Of this great nation hisgling
with its Banker for a bonus. which is to that Go
vernment Of no importance, it should, in this in.
stance, waive the demand for bonus, for the con-
Of the reduction Of one per cent. on all
loans by the Bank. II such arrangement be- now
made, the important results that must follow
will, to your clear perception, readily appear
All other Banks, where that Bank has an esta-
bl,shment. must discount at the same rate or lose
the best business; and a general national reduc-
of interest to S per cent. may be reasonably
IN a very short period Of time, which
was the rate of interest in the State Of Virginia
after a Bank was established there. :
Such q measure being adopted will place every
one in this country, merchants, s~hip.owners, ma
nufacturers, artisans and tradesmen Of every de-
who borrow money in aid OF their CAPT.
tai and industry, upon equality. in that respect,
with the borrower in England; which will be
ound an important benefit to all business. To
those men by whom the Banks make their profits,
| would devote the bonus in the form Of interest
to them; their excited enterprise aud IN
would repay it an hundred fold to the
community by the increase Of general prospect.
~. I have considered it a duty to place this
within your view; I pretend not to dis.
;uss its merits farther. They are for the consi-
.1eration of Yourself and those in whose power it
8 to grant or refuse the charter asked for. There
IS another matter, affecting the business Of dis.
count at this and all the Banks in this country,
70 which I desire to call your attention. Singly
t appears Of trivial consequences; in the aggre-
gate it is not so. Rowlett's discount tables rec
son the year at $50 days: all the discounts are
in that proportion; by which the Banks
interest for five days too much per annum.
# Mr.. RowIett was MT ignorant of the truth, he
vas something worse, when he asserted to me
hat his tables corresponded with the English
nook of Interest in that partie uIar. l will put
n your possession, if desired. the English tables
# interest, which state that the year consists of
'65 days. and all the calculations of interest
correspond Herewith.
There is another prevalent practice IN many of
he Banks in this country: iii exists in the Uni
ed States Bank, it requires correction. lii the
'~ractice Of charging "a DAYS discount instead Of
Is days, upon notes Of 60 days, by including the
lay of payment as well as the day Of loan; which.
pom six renewals Of the loan in about one year,
ives to the Bank SIX days interest more-mak.