The Massachusetts spy. [volume] (Worcester [Mass.]) 1831-1858, 1832-10-10


stock diWays above par, what pretence woul
there be, nevertheless, for saying that such aun
/ uentation Of its value e,rat,ntu" froT
/ Government The message proceeds TO declar
That tile present act proposes another donation an
I other gr1uty, to .he same men, of at least seye
! millions more. 1t seems 10 me that this is an cy
tTa0rdinory statement, and an extraordinary styl
OF argument, Tor such subject and on such an &C
caslon. In the first place, the facts are all assam
I ed /; they lakeu for true without evidence
There are no proofs that any benefit to that amour
/ Will accrue to the Stockholders, nor any cxpere c.
TO Justify the expectation OF it. 1t rests on ra
dom estimates mere coniectnres But supnos
the continuance OF the charter shou d prove bene
hclal to the stockholders, do they not pay for it
| They give twice as much for a charter Of fifteeI
years rs was given before for one of twenty An,
II the proposed bonus or premium, be not in til,
PRESIDENTS Judgment, large enough, would he
nevertheless. on such mere matter of opinion a
that. negative the whole bill May not Congress
be trusted to decide. such a subject as tn,
amount of the money premium, to be received d,
Government for charter Of this knd7 But
SIR, there Is larger, and much more lust view q
this subject. The Dill was not passed for the pur
pose Of benefitting the present Stockholders
Their benefit, If any, is incidental and collateral
Nor was it passed ON any idea that they had ;
right TO renewed charter; although the message
argues against such right, as if il h I'D been some
where set up and asserted. No such right has bee 7
asserted by any body. Congress passed the bill
not as bounty favor to the present stock hoId
ers nor TO comply with any demand of right. on
their part bu; to promote great public interests
for great public objects. Every bank must have
some stockholders, unless il be such bank as the
President has recommended and in regard ia
which he seems not likely TO find much concur
renee of other mems opinions; and if the stock
holders. whoever they may be, conduct the affairs
of the bank prudent!y, tie expectation is ALWAYS
of course, that they will make it profitable TO them
tbn
charter is not to be granted, because it may profit
able, either in small or great degree to the stock
holders, no charter can be granted. The objection
lies against all banks. Sir the object aimed at by
such institutions is to connect the public safety
and convenience with private interests 1t has
been found by experience. that banks are safest I'M
der private management, and that government
banks are among The most dangerous Of all inven-
tons. Now, sir, the whole drift of the message is
to reverse the settled Judgment of all the civilized
world, and to set up, government hanks, ndepend-
ent of private interest, of private control For
this purpose The message labors even beyond the
measure OF all its other abors to create iealousies
and peludices, on the ground of the alleged benefit
which individuals will derive from the renewal OF
this charter. Much less effort is made to shew that
Government, or the public will be- injured by the
bill than that individuals will profit BY it. Follow
ing up the impulses of the same spirit. the message
goes on gravely to aege, that the act as passed
by Congress, proposes to make present of some
millions Of dollars to foreigners because portion
OF the stock is holden by foreigners. Sir, how
would this sort OF argument apply to other cases
The President has shown himself not only willing
but anxious. to pay off the three per cent stocks Of
the United States at par, notwithstanding that II
is notorious that foreigners owners of the great
er part ofit. " by should he not call that dona-
ton to foreigners of many millions
! Will not dwell particularly this part of the
message. Its tone and its arguments are all in.the
strain. Ii SDPakS nf the raiu of
present stockholders, Of the value of the nonopo.
ly; 1t says that all monopohes are granted at the
expense Of the public that the many millions
which this bill bestows the stockholders come
out OF the earnings of the people that if Govern
ment sells monopolies, it ought to sell them in
open market; that it is an erroneous idea tina,
the present stockholders have a prescrptive
right either tn tho e.. -. tI0 hs~".y =" 90
ernment; that the stock is IN the hands of few
and that the whole American people are excluded
from competition in the purchase Of the monopoly
To all this say, again, that much Of it is assump
tlon without proof, much of it is an argument
against that which no body has maintained OF
asserted and the rest of it would be equally strong
against any charter, at any time. These objec
tons existed in their full strength. whatever that
was, against the first Bank. They existed in like
manner. against the present Bank at its creation
and will always exist against all Banks Indeed a:
to the bill now before US, all the fault found with
that is, that it proposes to continue the Bank sub
principles Of the existing corporation" saws the
message, " and most of its odious features are re-
tanned without aleviaiOn;" so that the message
is aimed against The Bank, as it has existed from
the hrst, and against any and all others resembling
1t IN It's general features. Allow me now, sir, t.
take notice of an argument, founded on the practi
cal operation of the Bank. That argument is this
Little Of the stock of the Bank is owned in the
West, being chiefly owned by the citizens of the
Southern and Eastern States, and by foreigners
But the Western and Southwestern States owe
the Bank heavy debt so heavy that the interest
amounts to million six hundred thousand a year
This interest is carried to the Eastern States or to
Europe annually, and its payment is burden on
the people Of the West, and drain of their cur
rency ichich no country can Bear Without incon-
renience and distress. The true character and the
whole value of this argument, are manifest by the
mere statement of it. The people OF the West
are from their situation, necessarily large borrow
ers. They need morey-capital, and they borrow
IT, because they can derive benefit from its use
much beyond the interest which they pay. They
borrow at six per cent. of the Bank, although the
value of money with them is at least as high as
eight Nevertheless, although they borrowed at
this low ofinterest and although they use all
they borrow thus proftably. yet they cannot pay
the interest without " Inconvenience and distress;
and then, sir, follows the logical conclusion that
although they cannot pay euefl the interest tcithou
Inconvenience and distress get less than four gears
both principal and interest ,oithout causing more
than light pressure This is the argument
Then follows another, which may be thus stated
II is competent to the States to the property Of
their citizens vested in the stock of this Bank but
the power is denied of taxing the stock of foreign
ers; therefore, the stock will be worth ten or ff.
teen per cent. more to foreigners, than to resi-.
dents, and will Of course inevitably leave the coun.
try, and make the American people debtors IN
aliens in nearly the whole amount due TO the Bank
and send across the Atlantic from to millions
ot specie every year to pay the Bank dividends
Mr.. President, arguments like these might be more
readily disposed owere it not That the high and off
cial source from which they proceed, imposes the
necessity Of treating them with respect. In the
first place il may safely be denied that the stock
ithe Bank is any more valuable to foreigners thar
our citizens, or object of greater desire t.
them, except in far capital may be more
abundant in the foreign country. and therefore it:
owners more in want of opportunity of investment
The foreign stoCkholder enjoys no exemption
from taxation lie is, of course, taxed by hi.
own government for his incomes, derived from THU
as well as other propertyj and this is full answe
TO the whole statement But it may be added, il
the second place, that it is not the practice of civ
lized States to tax the property Of foreigners un
der such circumstances. DO we tax, or did we eve
tax, the foreign holders of our public debt Doe
| Pennsylvania, New York. or Ohio tax she foreign
holders of stocks in the loans contracted by cithe
| of these States! Certainly not Sir, must con
Tess, had little expected to see on such an coca
! sion as the present, a labored and repeated at
tempt TO produce an impression on the public upin
| ion, uniayorable to the Bank, from the circurl
stance that foreigners are among its stakeholder:
| have no hesitation in saying that | deem such
| strain of remark the message contains q
! this point, coming from the President of the Unit
ed States, to be Injurious to the credit and charac