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

sod engthwise, and about the middle of the draft,
payable to bearer, before they be signed by the
President and Cashier. When compc,cd they arc
to be furnished TO the customers of the Bank, or
other persons who ipay wish 10 procure them The
entries respecting them, both here and al the brach
es, are intended f0r convenience sake to be analo
gous to those of branch notes Their recent under
the denomination Of branch drafts is to be similar
ly acknowledged by the Cashier, and in Duplicate
through the respective Presidents They are be.
sides to he rel ortcd the weekly state of the Of
flee, as branch draft paper received used, and on
hand.
And whenever they may be in transitu between the
Offices, must be noticed at the foot of the state
ment, like other packages"
On the 9TH of January, 1881, resolution passed
the Board 10 issue drafts OF the denpminat of
twenty dollars. These branch orders when dis
charged by the parent Bank, again re issued by
that Bank, when il has no small notes of its own
The paper marked +, contains statement of the
amount of branch drafts issued, on hand i'm circu
ation, and the offices from whence issscd. Bv
tins table, 1t will be perceived chat $40 7SI ,G35 have
issued 1881 ,51i arc hand; and S7,ilOO 900
arc in circulation.
The foregoing is succnct history of the issue
OF branch drafts. Whether it can be justified UNI
der the charter of Src Bank the Committee will
leave To the better judgment of Congress.
The third case is the selling con, and particu-
Iariy American coin. The attention Of the Com
iniitee was drawn to this subject by the fact that
the General Government had, occasion, to
pay the Bank two per cent. on ten thousand Spa
nlsh dollars which it wanted for the benefit of the
Navy IN South America. To an incrrogatory put
TO the President on this subject, he replied, 'sIhe
Bank is authorized to deal in bullion 1t buys and
sells bullion. All foreign coins are bullion. Their
being legal tender does not make them tue less
bullion, and tie Bauk having bought them at a
premium sells them at premium. The obliga-
tion oi the Bank is to pay the claims it in coin
American coin, or lcgazed coin; and if tho foreign
com is worth, ntrinscally, commercially, more
ihan tho American coin, the difference in value
must be worth the difference in specie, and there
seems reason why the Bank should sell its bull
lion any more than its bills of exchange, at less
than their value" He then refers the Committee
to correspondence, marked No 4.
Although the Bank acted under legal advice, it
may be well questioned whether foreign coin is
bullion. The Constitution gives to Congress the
right to regulate its own and foreign coin; when,
therefore, the latter has value prexed to it by
law, and is suffered to be used, with that regulated
value in like manner with our coin, it would
seem not to have lost the name and character of
coin, and is made by force of law what it would be-
IT carried through the mint and subjected to the
condition of our coin; and, therefore, to deal
IN II as commodity, is calculated TO disturb its To-
gal value, and render least that portion of the
metallic currency uncertain and fuctuating.
If, however, the Committee have taken a
wrong view of this subject so far foreign coin is
concerned, it seems by the statement of the Prcs-
dent of the Bank, be virtually admitted that our
own coin is not bullion, and, therefors, does not
come within the objects of trade allowed to the
Bank by the 9th fundamental rule of the charter.
by reference to the statement of specie sold by the
Bank, marked No. "a, it will be found that the
sum of SSSi, 1874 A of American gold coin has
been parted with.
The 4th case is, selling stock obtained from Co
vcrnment under special acts of Congress. They
have thought it their duty to present the subject
the consideration of Congress.
1t Is necessary here to observe that the chart
or must have intended some meaning in prohibiting
the Bank from dealing in stocks. There is, per-
40 fitl i,S
and none which is fiuctuatinC and liable to be
influenced by the slightest causes, often producing
ruin or immense fortunes in the most sudden man
ner 10 prevent such great monicd institution
then as the Bank, from dealing in this article,
which its vast means could raise and deprcss at
pleasure, seems to have been wise provision in
the charter. The right of the Bank to acquire or
sell stocks, is special onc it must be done by vr-
tue OF law of Congress. The charter itself
provided that part of its capital might be paid in
the stock of the Government and such stock, par
ticular " might be disposed Of But the Commit
tee suggests whether this will apply to other stocks
obtained by virtue of subsequent law of Congress-
unless that law specially confers the power to dis
pose of 1t. In two important loans obtained from
the Government, since the charter was granted the
Bank has parted with valuable Stock and these
cases will illustrate the point now submitted to
Congress. While the Committee refer to the trans
actions of the Bank in the funded debt of the u
States, for the purpose above mentioned they also
have In view the presentation of the subject, to
SHOW not only the manner OF dSpoSlng OF that stock
Dut whether IT was not contrary to the express un
derstanding with the Government at the time of
obtaining the stocks. For the loan of 81 600 900
OF per cents. made in 1921 and the 50, 000 900 of
Il per cents. made in December, 1924, there was
strong individual competition at premium for a
part or the whole, against the Bank; yet, the Bank
had preference over the individual offers upon
the principle that it would be moro advantageous
10 give it to the Bank reduced rate and parti-
cpac as partner, than to give it to individuals at
premium. This confirmed at the Treasury
The President of the Bank, in letter dated 18th
December, 1921 which will be found among the
documentary testimony, after saying he had taken
since we have taken the loan at par on the distinct
ground OF our having the means of doing it, If
would be advisable, in every point of view, not to
soil any of the FIOrida Loan in Boston," By
statement Of the amount of funded debt sold by
the Bank, marked No. g. it will be seen that as ear
Iy June and July 1925, the year after it was ta
ken, the Bank began to sell this stock, and cont.
nucd to do so, sometimes at premium, and some
times at loss up 10 the 9th day of November
lo29, on which day they had disposed of all but
G93,923 ", and that too at loss of 81, 4i3 81,
notwithstanding offers were made by individuals
Tor large amount at premium, and rejected by
the Government, upon the principle before stated
L he same document shows that there was, between
February, 1872, and october Of the year, sold
of the S5,000,000 Florida loan, 81 712, 261, at a
loss of ST. Gel %. For this loan, the Committee
are not aware of there being any offers by indv-
dnals at premium. The document shows
that, between February 1926, and February, 1892
the whole of the 900 loan of per cents.
OF 1921, has been disposed Of at premium of
Sl36,1S0 25. The premium paid for which, at
The time 1T "as taken, was provided for in a semi
annual appropriation Of S60000, in the report of
the first of July, 1921, before advorted to. BY
these operations, it will be obviously perceived, that
IT the Bank is allowed to sell stocks aenuired nv