Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-05-04
REPORT OF THE MAJORITY.

spcction of the books, and the examination of the
proceedings of tho Bank Odd of March last:
and, after tho most attentive and laborious invcsti
CATION which their limited time would allow, the
majority have prepared the following Report, which
they beg leave TO submit TO the House of Rcprcsen
tativcs.
They believed, thai, as the House wished i'm For
nation more for the purpose of enlightcning their
minds, and assisting their Judgments as to the
expectancy OF again renewing its charter than to
abridgc it of the small remnant of time left tor
lis operation, liberal construction of the rcsolu.
ton would not be deemed departure from their
trust consequently they have directed their inqui-
ricS TO two general objects.
list. Whether tho provisions of the charter had
been violated.
I'd. Whether there have been any circumstance
OF encouragement against which future lcysla
| ton might guard, which should destroy its
! claims to further confidence.
On the first point, following the example of
former Committee, making similar investigation
without expressing any opinion such eases as
have been subjects of imputaton against the
Bank,
These cases they conceive to be six in number
! and are follow:
LIST. In relation to usury.
ID In relation to the issuing of branch orders,
as circulation.
Sd. The selling coin, and particularly American
coin.
llh. The sale of stock obtained from Govern.
mcnt under special acts of Congress-
9th. Making donations for roads and canals
and other objects.
9th. Baildng ho"ses to rent sell, and erect
| ing other structures in aid of that object.
On the first ground tho President of the Bank
refers us to statement marked G., and says il will
"cXplain the only cases TO which this description
might be considered applicable, two of them being
cases IN which the board repaid the amount con
sdcrcd over charged, and in regard to the third
| no application has been made for any change in
the form of the original loan" See said statement
marked No. /.
To question asked the President, whether anv
cases of disguised loans, and domestic bills of OK
| change, had come to the know ledge of the parent
Bank, in which the branches had received usurious
| interest! he replied he had never heard of any,
but made further statement, marked No. @ in
which lie states that the usual custom is to charge
upon domestic bills Of exchange, the rate of inte
rest and the rate of exchange, and if the sums
united should exceed six per cent. it is not usury
and gives an explanation in said statement.
On the second ground, the Committee will
submit document Number 8, and its inclo
suers in which the and origin of branch
drafts will be fully The President states
''the inability of the Bank to furnish the amount
of circulating medium, which it was created to
supply, became apparent at early period. In
year after It's organization, the directors present
ed a Memorial TO Congress, dated 9th January
1918, requesting that an alteration might be m adc
in the charter, to authorize the President ond
Cashiers Of the Seueral branches to sign the notes
issued by those branches" See copy of the Memo
rial marked 3 A, in which it is stated "that mas
much as the act to incorporate the subscribers to
the Bank of the United States requires that the bills
or notes which may be issued by order of the said
corporation, shall be signed by the president and
countcrsgned by the principal cashier. it has been
found mpracticablc to supply, in any reasonable
degree, the required circulation for the bank and
It's numerous offices of discount and depositc" it is
| therefore, asked of Congress to permit the presi
dents and cashiers of branch banks sign and issue
| bills. The application not granted The pre-
sident states 'the subject was resumed by another
4 Nov Ilaorl
| of the memorial marked 3, B, in which it is stated
under the charter it has been doubted whether the
oank mas power to authorize the Issuing of not
signed by the president, and countcrsgned by the
cashier The labor and the time necessary to sign
notes for the bank and all its branches are much
greater than either Of those offices can besow I'D
on that object and hence the Bank has been unable
TO put IN c"c"tati0H sufficient amount of notes of
the smaller denominations, which the public most
want, and which arc best calculated to serve the
interest OF the Bank" 1t then requests that DOW
or he gwen TO the parent bank TO appoint one or
more persons to sign notes of the smaller demon
lnaIon, which was not acted upon.
The president states the "appcation was aoain
renewed, and a select committee of the House of
representatives, reported i'll favor of allowing tho
appointment designers, on the 9th of February
1913; out thcre was no action of the House upon
H." WE WIZ 4'''
On the first Of December, 1896, the President
was instructed to cndeayor TO procure the ncccssa
~ chahgc' lie says, che reported the 9th of
February, 1921 that no action on the subject woud
take place at that session of Congress- and accord
lngy, the matter referred to the committee ON
the Offices" See Doc. 3, G.
lie adds, ''the opinion of Mr.. Binncy Mr. Web |
stcr, and Mr.. Writ, the Attorney General. was
| taken on the subject of issuing branch draftsn
See Doc. 3. C.
the 9th of April, 1927 the following com.
municatlon was made to the board of directors:
The committee on the Offices to whom, was re- |
fcrrcd, on the 23d of February last, the report
OF the president of the bank, stating the unsuccess
ful result OF the application to Congress for an |
hHcTdtoH OF the charter, which would authorize |
the Signature of notes by other persons than the
president and cashier, report that in various paris
OF the Union but more especially i'm the southern
and western sections, there is constant and unceas
ing demand at the Offices for the smaller dcnonina
Ions OF notes, which it is impossible TO supplv ~
They therefore suggest that the Discount officers
should be instructed 10 draw checks on the cashier
orthc bank for smaller sums than they have hther
to been III the habit Of furnishing. In order TO
save the labor OF preparing such checks at tho or
fees as well as for the greater security of the bank
and the community, it has been deemed best to
prepare the blank forms of UDiform apycqroncc
and to distribute thcmirom the parent bank Such
Storms have been accordingly devised and are no,v
submitted TO the board with the recommendation
of the committee that the experiment he tried and
IT found useful TO tho community, be pcrD,ggcuHy|
adopted" Sec Dock. 3. c.
The document marked 4, ID, is a corrospondcncc
between tho President of the Bnnk aud the Score
tary of the Treasury, on the character of theso
Bank drafts, which has already been printed and
submitted 10 Congress.
The paper marked ), r., contains instructions In
the branch Banks as to the issue Of branch orders !
On the 2lst Of April, 1927, the Cashier Of the ma
rent Bank writes circular to the respective
branches, informing them, among other things,
f,s.sN n IL -