Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-05-18

bation and ccnSure.
The minority of the committee will barely adj
vert 20 some OF the other topics introduced INTO
the report
IL is alleged that the bank has given snduc
extension 10 its branches, and Icy some process OF
reasoning, dlh ult to comprehend, II seems To hc
inferred, that the alleged excess OF the circulating
medium, rs owing in part, To that cause II is sui
hcIcnt 10 remark, this point, that the greatest
Improvement which has been made IN the admins
trai"n of the bank, aud that which gives lis true
federal character, has been effected by the cStab
liShrncnt of branches wherever the commerce OF
the country required them; aud by the system OF
exchange operations which these branches have
enabled the bank I" carry iuio elect
The whole business OF dealing in domestic bills
at exchange, essential; 20 the internal commerce
OF the country has been almost entirely brought u
boat within tha last eight wears. In June, 1919,
tne hank did not own a sing'c dollar oi domestic
bills; and in December, lS2l, i, owned only To the
am"uh' OF s., 31S ESQ; whereas 1t now owns TO
the amount OF S;230j?,9'!
The o, iuiou of Mr.. Cnevcs, IN ISIS is advertcd
TO IN The report to prove tho unpocY at increasing
tho numb Ell al branches: aud the fact is stated,
that large proportion of the losses sustained by
the bank blve been ow ng to the mismana gcuc ut
ofthc branches
Tho opinion Of Mr.. Chcvcs was founded on the
pccuIr state ottMings which existed at the time.
lie felt the difficulty ofcontiolling these branches
OF which, he stated, the directors wcrs FREE
Qucntly governed Ivy individual and local interests
and feelings" and hs came into the administration
| at Il time W hen immense losses had been suffered
10y their mal- administration. But il is very i'm
portant to TciuaFkwhat the report does not bring
to vicw-ha, amo,t all the dispro, ortiouatc loss
es incurred Ivy the branches were previous to lSlg
and that, since the extension of the branches, al
winch the report complains, they have sustain
cd greater losses, in proportion, than the mother
bank; "hilc ninc-tenhs of the CONNIE cal ticili
lies afforded 10 the 'untry, aud -cnts oi the
pr"htS secured f"rthc stockholders have resulted
/ from the operations OF these branches
The Report makes reference To the Obligation of
inc Bank to transfer tic funds of the Government,
4" any point where they may be wanted for dStursc
mcHt and seems TO have made the extraordinary
discovery, that this opc; ajom is 40 burden. at ali
! but an actual benefit to the Bank. For the salts.
faction OF those who might DC sccrtical the words
ot the Report will be given:
- ne largest portion of the revenue partcula ri V
from imports, as is universally known il collected
Ill the Atlantic cities north of the Potomac. These
clrs being the great marts Of supry to nc rly the
whole of the United States. and places TO which
rcmittanccs centre from almost every part OF the
country, creates demand for funds upon them
from nearly every quarter, constantly, and rene
rally al premium. Therefore, so faras the Bank
IS called upon to transfer funds from those cities to
other places, ii jecJmcs matter IF profi, Gud mn,
81 crPcRsc 10 IL; ard tie greater tie distance the
gr'0tcr TIE Preminm; and the iGigcr the amount
r'q"'red to he transferred by the Government,
and tic greater TIE distance, tie orcafcr Tie p0Gt
and 0dr0ntGgc 10 tie Bqnk."
Ii these views OF the report I've correct, the bank
IS certainly an Invaluable institution. IL has not
only onninilatcd Tins ana space, hut it has done
something more. 1t has produced such ST .tc OF
the exchanges, that II is much easier for a man i'm
New ork to pay thousand dollars in ST. Louis
than 10 pny ii iii Wall street; and in which, conse
qucntly, the New York debtor actually makes y
profit by being required TO pay his debt housan nd
miles off instead of paying il at his door! If this Lc
ccrrct vic:o OF the subject, il is undoubtedly one
of the greatest OF the mod;rn discoveries in finance
and commerce.
But the minority still incrcdulous They
cannot understand how il is possible for the bc
10 4ia"e profit by transferring funds, when it is
expressly stipulated that they shall transfer them
Tor nothing. Nor they well conceive how
the loss which the bank suStans by the opcration
OF transferring funds for the government can be
less than the difference between the .sno;hinr"
which 1t receives from the government, and the
profit which it would derive from tho same opera
ton, if performed for individuals
III the government collected it's revenues i'm spe
Gle at New York, and had occasion to cxpend it
at st. Louis, it would certainly cost it something
to transport the specie from the one place TO the
other. IL, IN the absence of Il Federal bunk It
collected its revenues in tho bills of State banks as
would be Obliged 10 do, the operation of trans
tcrrng these funds to distant places would involvc
system, the bank is responsible for the sa c cuSo
ny OF the government funds, and for placing them
wherever they may be required, without any OK
pcnao whatever to tho government.
If, then, the bank has not aided the fiscal one
ratinns OF the government the report seems TO
intimate, uniform currency and revenue safely
kept, and universally transferred at the risk of the
o"Ih ana without expense to the government, al.
lords no aid to It's financial operations.
The report, advcrting to Il letter from the presi-
dent OF the Bank, of the 29th March last in which
he informs the Secretary Of tie Treasury that the
collector of New York had requested the a. bank TO
authorize An extension of loans in that city, in or
der to assist the debtors of the Government ~ and
civ ,;o 6
tho discounts of the Cicc at that place calculated
to make the impression that extension of loans
had taken place. This is an error. 1t proceeds
from conioumding notes discounted with bills of
exchange purchased by the Bank. 1t will he seen
by the weekly statement OF the New York board
that the amount of notes discounted on the LET of
September, 1881, was 81, 1913, l34 and that on tho
2lHl ct March, 1892, tcw days before the date of
the Presidents letter the amount was 81 S310I7
exhibiting an increase of 1852, in little more
than six months.
Ii the amount Of domestic bills falling due NJ
distance, during the period, were LARGER than
the amount purchased ny the bank-ths fact has
nothing to do with the extent of the accon,uodo
ton afforded by the ba..k to the merchants of
New York. The truc measure of that accommoda
ton is the amount OF domestic notes united TO that
of the domestic bills purchased
That the bank has relieved the commercial COM
nunty of New Tork during the recent pressure. is
fact well understood practically felt by the MGR
chants there; and it Will be difficult to reason them
out of the convictions Of their own experience bv
artificial statements and conjectural differences.
Upon a revisw of the whcc ground occupied in |
he examination they have made, tic Minority arc |
fthc opinion that the affairs of the Bank have /
bccn administered by the President and Directors
with very great ability, and with perfect fidelity to
all the obligations to the Stockholders to Tho Go. !
vcrDmcnt, and to The country They regard the
B INK Inst tuition indispensable to The pre-
scryaton of sound currency, and to the financial
operations Of the governments; and should consi.
der tho refusal of Congress TO renew the charter
10 great national calamity.