Delaware gazette and American watchman. [volume] (Wilmington, Del.) 1828-1837, 1832-07-13

purchase of this monopoly 1t seems to be predcatda
on the erroneous idea that the present STOCKHOLDERS
have prescrptive right, not only to the favor bRs
to the bounty of Government. 1t appears that MOI
than fourth part of the stock is held by foreigner&
and the residue is held by few hundred of OIL
own citizens, chiefly of the richest class for thef
benefit does this act exclude the whole American
people from competition in the purchase of thiA
monopoly, and dispose of it for many millions les
than it is worth. This seems the less excusabeK
because of our citizens not now stockholdersN
pettioned that the door of competition might be
opened and offered to take charter on terms much
more favorable to the government and country.
But this proposition, although made by men
whose aggregate wealth is believed to be equal to
all the private stock in the existing Bank, has been
| set aside, and the bounty of our Government is
proposed to be again bestowed on the few who
have been fortunate enough to secure the stock,
and, at this moment, WELD the power of the exist.
ing institution. cannot perceive the Justice or
policy of this course. If our Government must sell
monopolies, it would seem to be its duty to take
nothing less than their full value and if gratuties
must be made once in fifteen or twenty years, let
them not be bestowed on the subjects of a foreign
government, nor upon designated and favored
class of men in our own country. 1t is but Justice
and good policy, as far as the nature of the case
will admit, to confne favors to our own fellow
citizens, and let each in his turn enjoy an oppo-
tunity to profit by our bounty. In the bearings of
the act before me upon these points, l find ample
reasons why it should not become law.
II has been urged as an argument in favor of re-
chartering the present Bank, that the calling in its
loans will produce great embarrassment and dis
tress. The time allowed to close its concerns, ia
ample, and if it has been well managed, its pres
sure will be light, and heavy only in case its man.
agement has been bad. IT, therefore. it shall pro.
duce distress, the fault will be its own, and il
would furnish reason against renewing a power
which has been so obviously abused. But will
there ever be time when this reason will be less
powerful To acknowledge its force, is to admit
that the Bank ought to be perpetuated, and as a
consequence, the present stockholders and those
lnheritlng their rights as successors be established
privileged order, clothed both with great political
power and enjoying immense pecuniary advantages
from theii connection with the government.
The notifications of the existing charter. pro.
posed by this act, are not such, in my view, as TO
make It consistent with the tights of the States or
the Liberties of the people. The qualification of the
right OF the Bank to hold real estate the limtaton
oil It's power to establish branches, and the power
reserved to Congress to forbid the circulation Of
small notes, are restrictions comparatively of little
value or Importance. All the Objectionable prin-
cpes OF the existing corporation, and most of it's
odlous features, are retained without alienation,
The fourth section provides "that the notes or
bills OF the said corporation, although the same be
on the faces thereof, respectively made payable
at one place only, shall, nevertheless, be received
by the said corporation at the Bank, or at any of
the offices Of discount and deposit thereof If ten
dered in liquidation or payment of any balance or
balances, due to said corporation TO such office
Of discount and deposit fiom any other incorpora-
ed Bank" This provision secures TO the State
Banks legal privilege in the Bank of the United
States, which is withheld from all private citizens
u state Bank in Philadelphia, owe the Bank of
the United States and have notes issued by the ST.
Louis Branch it can pay the debt with those notes;
but if merchant, mechanic, or other private cit.
zen be IN like circumstances, he cannot by law
pay his debt with those notes, but must sell them
at discount, or send them to St. Louis to be cash
cd. This boon conceded to the State Banks thoupb
not unjust in itself is most odious, because il does
not measure out equal justice to the high and the
low, the rich and the poor.
10 the extent of its practical effect, it is bond
OF union among the banking establishments of the
nation erecting them into an interest, separate from
.hat OF tne people, and its necessary 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 interest.
Inc ninth section of the act recognizes plinci-
pies OF worse tendency than any provision of tho
present charter
1t enacts that "the Cashier of the bank shall an
nualy report to the Secretary of the Treasury the
names OF all stockholders who are not resident cit.
lzens Of the United States, and on the application
OF the Treasurer of any State, shall make out and
transmit to such Treasurer list of stockholders
residing in, or citizens of such State, with the am
cunt OF stock owned by each" Although this pro-
vision, taken in connection with decision of the
supreme Court, surrenders by its silence the right
Oh tne states to tax the banking institutions create
BY this corporations under the name of branches. =.
throughout the Unicn,-1t is evidently intended to
be construed as concession of their right to tax
mat portion of the stock which may be held BY
helr own citizens and residents. In this light. If
the act becomes law, it will be understood by the
States who will probably proceed to levy tax e.
lual to that paid upon the stock of banks ncorpor.
lted by themselves. In some States that tax is now
on9 Per cent either on the capital on the shares
and that may be assumed as the amount which ali
;itizons or resident stockholders will be taxed un.
ier the operation of this act. AS it is only the
stock hed ~ the State, and not that employed with.
n .nem, which would be the subject to taxation;
and as the of L.II-