Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-07-12

So ~ has been bad. II, therefore, 1t shall
t'.a d;s,res,. the fault will be its own, and 1t
p"onid furnish reason against renewing power
'.b;ch mas been so obviously abused. But VIII
60 over be time when this reason will be less
nnxsr(pls To acknowledge its force, Is TO ad-
Pp;t that the bank ought to be perpetual, and. rs
consequence. the present stockhoiuers anu muse
,nheriting their rights as successors oe es'aosh
Oh a privileged order, clothed both win great
nntical power, and enjoying Immense pecunlary
pJy.p,aGes from their connection with the Gov
eminent
.,ossf nv this act. are not such, in my view. as
make il consistent with the rights OF the States.
or the liberties Of the people. The qualification
of The right Of the bank to hold real estate, the H.
imitation Of its power to establish branches, ana
The mower reserved to Congress TO forbid the cir
cuIatlon of small notes, are restrictions, compa-
ra,iyeIy of little value or importance. All the
objectionable principles of the existing corpora.
finn and most of ITS odious features, are retained
without alienation.
The fourth section provides that the notes or
hills of the said corporation, although the same
no IN the faces thereof respectively made paya-
hIs At one place only, shall nevertheless be re-
,sved by the said corporation at the bank, or al
any of the Offices of discount and deposIte there
Of. il rendered in liquidation or payment oil any
balance or balances due to said corporation, or 70
such office Of discount and dePosite from any other
Incorporated bank"
This prov, ision secures to the State banks ie-
sal privilege in the Bank Of the United States.
Which is withheld from all private citizens. ~
, STATE hank in Philadelphia owe the Bank OF
the United States, and have notes issued by the
:, Louis branch, it can raw the debt with those
e L.
,,te citizen be in like circumstances, he cannot,
. hv law. nav his debt with those notes, but must
sell them al discount, or seud them to st. Lou
J., 10 be cashed This boon, conceded to the
State banks. though not unjust in itself, Is most
od,ous: because il does not measure out equal
Justice to the high and the low, the rich and the
moor. To the extent OF its practical etfect,It Is
abond Of union among the banking establishments
nj the nation erecting them into an interest Sc
para,e from that Of the people; and ITS necessary
tendency is TO unite the Bank OF the United
| States. aud the State banks, in any measure
which may be thought conducive to their common
interest.
The ninth section Of the act recognizes Prin'
cples Of worse tendency than any provision OF
the present charter.
IL enacts that "the cashier Of the bank shall
annually report to the Secretary OF the Treasury
the names Of all stockholders who are not resi-
dent citizens OF the United States and on the ap-
pcation of the Treasurer Of any State, shall
make out, aud transmit to such Treasurer, a list
Of stockholders residing in, or citizens OF, such
State, with the amount owned by each.
Although this provision, taken in cOnneyion
with a decision of the Supreme Court, surren.
ders. by its silence the right of the States to tax
the banking institutions created by this corpora
ton, under the name of branches, throughout the
Union, it is evidently intended to be construed
rs concession Of their right 20 tax that portion
Of the stock which may be held BY their own Cit
zens and residents. In this light, it the act be-
| comes law, il will be understood by the States
who will probably proceed to levy tax equal to
that paid upon the stock of banks Incorporated By
themselves. In some States that tax is now one
per cent, either on the capital or On the shares
aud that may be assumed as the amount which
all citizens or resident stockholders would be tax
cd under the operation Of this act. AS It IS oni,
the stock held in the States, and not that employ
ed within them, which would be subject to taxa
ton aud as the names of foreign STOCKHOLDERS are
not to be reported to the lreasurers OF the
States, il is obvious that the stock held by then
will be exempt from this burden. Their anuua
profits will therefore. be increased one per cent
more than the citizen stockholders, and as the
mated at seven per cent, the stock will be worth
ten or fifteen per cent more to foreigners than Il
citizens of the United States. To appreciate
the effect which this state Of things will produce,
we must take brief review of the operations,
aud present condition of the Bank Of the U. 5.
BY documents submitted to Congress, at the
present session. 1t appears that on lst OF January
1852, of the twenty eight millions of private stock
in the corporation, S,405.500 were held by TO-
reisuers, mostly of Great Britain. The amount
of stock held in the nine western States Is l4O,'
2OO and in the four southern States is $, 62S. 100
and in the eastern and middle States about 49,.
$50, 600 The profits Of the bank in 1881, as
shown in a statement to Congress, were about
Sass, 59S, If this there accrued in the nine west
ern States about $40. 048, in the four southern
States, about $50. 507, and in the middle and
eastern States, about 1,46S,0 il. As little stoe
is held in the west, il is obvious that the debt OF
the people u that section to the bank is principal
w debt to the eastern and foreign stoe kholders
that the interest they pay upon it. is carried into
the eastern States and into Europe, and that ii is
burden upon their industry. and drain OF their
curr,ncy which mn country can bear without In