The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1832-07-24
MESSAGE

= 9'n = MESSAGE IS
0Hs FROM
THE PRESIDENT OF THE. UNIT
pune @D's ED STATES. Fs
Returning The Bank Biz. nth has GJsc-
'-n NJ tions, SC, +,
- To THE Senate ss..'ss,
4 The bill to "modify ard continue" the
act entitled San act to incorporate the
subscribers Of the Bank of the United
States" was presented to me on the 4th
July instant. Having considered It with
that solemn regard to the principles Of
the Constitution which the day was CAL
cuIated to inspire, and come to the con-
|clusidn that IT ought NOT to become a
law, / herewith return it TO the Senate,
~ which Il originated, with my ptjec-
tions. -.
SA Bank of the United, States is, in
many respects, convenient for the Gov
eminent and useful to the people. En-
tertaining this opinion, and deeply inn
pressed with the belief that some, Of the
powers and privileges possessed by the
existing Bank are unauthorized by the
Constitution, subyersiye Of the rights of
the States, and dangerous to the liberties
fthe people, l felt it my duty, at an
carly period of my administration, to
call the attention of Congress TO the
practicnbility of organizing an institution
combining all its advantages and obyiat-
ing these objections. sincerely regret
that, in the act before me, l can perceive
none of those notifications of the Bank
charter which are necessary in my opin-
ION, to make it compatible with Justice,
with sound policy, or with the Constitu-
ton of our country.
The present corporate body, denomi-
mated the President, Directors and Com
pany of the Bank of the United States,
will have existed, ut the time this act is
intended to take effect, twenty years.
1t enjoys an exclusive privilege of bank
ing under the authority of the General
Government, a monopoly ofits favor and
support, and ,as necessary consequence,
almost monopoly of the foreign aud
domestic exchange. The powers, privi-
leges and favors bestowed upon it, in the
original charter, by increasing the value
of its stock far above its per value, ope-
i6e fi,eAa AsatScsckhoIders. Ss u Z = =: sz'5x
Er apology may be found for the fail
arc to guard against this results In the
consideration that. the effect Of the orig
inal> act Of incorporation could not be
certainly ,foreseen at the time Of its pas
sage. {. The act before me proposes am
e4her gratuity to the holders of the same
stock, shd, ia many cases, to the same
men of at least seven millions more.
This donation tindsln no apology in any
uncertainty as to the effect Of the act.
On all hands it is conceded that its pas
sage will increase at least twenty or
thirty per cent. more, the market price
of the stock, subject to the payment of
the annuity Of $200, 900 per year, secur-
edb BY the act thus adding in moment,
one fourth to Its par value. 1t is not
our own citizens only who are to receive
the bounty of our Government. 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 gratuities
to foreigners, and to some of our own
opulent citizens, the act secures no
equivalent whatever.-They are the GER
tain gains of the present stockholders
under the operation of this act, after
making full allowance for the payment
Of the bonus.
Every monopoly, and all exclusive
privileges, are granted at the expense
of the public whi,h ought to receive q
fair equivalent. The many millioni
which this act proposes to bestow on the
stockholders ofthe existing Bank, must
come, directly or indirectly, out Of the
earnings of the American people. 1t IL
due to them. therefore. if their Govern.
meht sell monopolies and exclusive pri
vileges, that they should at least exac'
for them as much as they arc worth ir
open market. The value of the monop
oily in this case may be correctly ascer
tanned. The twenty-eight millions o.
stock would probably be at an advance
of fifty. per cent. and command in mar
l ket at least forty two millions ofdollars
subject to the payment of the prosen
bonus. The present value of the mo
popoly, therefore, is seventeen millioni
of dollars, and this the aet proposes t.
sell for three millions, payable IN fifteei
annual instalments of $500, 900 ench.
1t is not conceivable how the presen
stockholders can have any claim to th'
special favor Of the Government. Th'
present corporation has enjoyed its mo
nopoly during the period stipulated in tn
original contract. five must have sucl
| a corporation, why should not the Gov