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

tice or policy of this course. If our Cover
Iment must sell monopolies, it would seem to
tits duty totake nothing less than their full value
land if gratulties must be made once in fifteen c
Twenty years, let them not be bestowed on tn
f|sub]ects of foreign government, nor upon dc
lsignated and favored class of men in our country
1T is but justice and good policy, as far as tn
nature of the case will admit, to conine our favor
to our own fellow citizens, and let each in hi
turn enjoy an opportunity to profit by our bounty
LIN the bearings of the act before me upon thes
points, find ample reasons why it should not be
icome law.
4 1t has been urged as an argument in favor o
Jre-chartering the present Bank, that the calling
in It's loans will produce great embarrassment
and distress. The time allowed to close its con
Germs, is ample, and if it has been well managed
its pressure will be light, and heavy only in case
| its management has been bad.-If, therefore, il
shall produce distress, the fault will be its own
and it would furnish a reason against renewing
| a power which has been so obviously abused
But, will there ever be a time when this reason
will be less POWERFUL To acknowledge is force,
is to admit that the Bank ought to be perpetual,
and as consequence, the present stockholders
and those inheriting their rights, as successors,
be established privileged order, cldhed both
with great political power and enjoying immense
pecunary advantages from their connection with
the government.
The notifications of the existing chrter, pro-
posed by this act, are not such, in my view, as
make it consistent with the rights of The States
or the Liberties of the people. The qualifca-
ton of the Bank to hold real estate, he lmita-
ton of its power TO establish branclps, and the
power reserved to Congress to forbid he circula-
nf r:ot,,,
ly of little value or Importance. Al the objec-
tionable principles of the existing corporation,
and most of its odous features, are reained with
out alienation
The fourth section provides "that nc notes o,
bills of the said corporation, although the same
/ be on the faces thereof, respectively made paya
bic at one place only, shall, neverthe less, be re-
ceived by the said corporation at the Bank, or a,
any of the Offices of discount and deposit thereof
! if rendered in liquidation or payment Of any bal
4 nce or balances, due to said corporation or tc
such office of discount and deposit from any Other
incorporated" This provision secures to the
State Banks legal privilege in the Bank of the
! United States, which is withheld from all private
icitizens. II State Bank in Philadelphia, owe
| the Bank of the United States and have note.
issued by the St. Louis Branch, it can paw tn,
debt with those notes; but if merchant, mechan
ic, or other private citizen be in like circumsan
ces, he cannot by law pay his debt with thos,
notes, but must sell them at a discount, or SEM
1 them to St. Louis to be cashed. This boon, con
coded to the State Banks, though not unjust il
itself, is most odious, because it does not measur
out equal justice to the high and the low, the rcl
and the poor.
To the extent of its practical effect, it is bon,
of union among the banking establishments O
the nation, erecting them into an interest, sepa
rate from that of the people, and its necessar,
tendency is to unite the Bank of the United
States and the State Banks in any measure which
may be thought conducive to their common in
1 terest.
The ninth section of the act recognizes princi
tples of worse tendency than any provision of the
lpresent charter.
1t enacts that "the Cashier of the Bank shall
ANNUALLY report to the Secretary of the Treasury
the names of all stockholders who are not residen
citizens of the United States, and on the applica
ton Of the Treasurer of any State, shall make
out and transmit to such Treasurer list of stock
holders residing in, or citizens of such State, witt
the amount of stock owned by EACH" Although
this provision, taken in connection with decis
ion of the Supreme Court, surrenders by its 81
lence, the right of the States to tax the banking
institutions created by this corporation, under thu
xame of branches, throughout the Union,-it i
evidently intended to be construed as a conces
sion of their right to tax that portion of the stock
which may be held by their own citizens anc
residents. In this light, if the act becomes a law
it will be understood by the States, who will pro
| badly proceed to levy tax equal to that paie
upon the stock of banks incorporated by them
selves. In some States that tax is now one pei
cent, either on the capital or on the shares, ant
that may be assumed as the amount which al
citizens or resident stockholders will be taxed un
der the operation Of this act. As it is only thu
stock held in the States, and not that employee
within them, which would be subject to taxation
and as the names of foreign stockholders are no
to be reported to the Treasurers of the States,
is obvious that the stock held by them will b
exempt from this burden. Their annual profits
will, therefore, be one per cent. more than tn
citizen stockholders, and as the annual dividend
of the Bank may be safely estimated at seven pc
cent, the stock will be worth ten or fifteen pc
iIcent. more to foreigners than to citizens of tn
United States. To appreciate the effects whic
this state of things will produce, we must take
brief review of the operations and present condi
tion Of the Bank of the United States
i By documents submitted to Congress at tn
present session, it appears that ON the first of Jan
luary, 1882, of the % millions of private stock il
.bo c,rnorat;on N9 105 500 vore hold hv fnra; m