Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-07-12
MESSAGE
FROM THE PRESIDENT OF THE U.

RETURNING The BANK BILL TO THE SENATE
WITH HIS OBJECTIONS.
TO the Senate:
The bill ..to modify and continue" the act.
entitled an act to incorporate the subscribers
TO the Bank of the United States," was present
ed to me on the 4th July instant. Having con-
sidered it with that solemn regard to the princi.
niles of the Constitution. which the day was cal.
culated to inspire, and come to the conclusion
that it ought not to become law, herewith re.
turn it to the Senate, in which it originated with
my objections.
A Bank of the United States is, in many re.
spects, convenient for the Government, and use.
full to the people, Entertaining this opinion,
and deeply impressed with the belief that some
of the powers and privileges possessed BY the ex.
listing bank, are unauthorized by the Constita.
ton, subverslvo Of the rights OF the States. and
dangerous TO the liberties of the people, iet it
my duty, at an early period o! my admnstra-
ton. to call the attention of Congress to the prac
tcabiIity Of organizing an institution combining
all its advantages, and Obviating these objections
sincerely regret that, IN the act before me eau
perceiye none of those notifications OF the bank
charter which are necessary, in my opinion, to
make it compatible with justice, with sonnd po-
licy, or with the Constitution of our country.
The present corporate body, denominated the
President, Directors, and Company OF the Bank
of the United States, will have existed, at the
time this act is intended to take effect, 90 years
1t enjoys an exclusive privilege OF banking III.
der the authority Of the General Government, a
monopoly of its favor and support, and, as ne
cessary consequence, almost monopoly of the
foreign and domestic exchange. The powers,
privileges, and iavors bestowed upon 1t in the orr
ginal Charter, by increasing the value OF the stock
far above its par value. operated as gratui'y OF
many millions to the stockholders.
An apology may be found for the failure to
guard against this result, in the consideration
that the effect of the original act Of Incorporation
could not be certainly iOrseen at the time OF rs
passage. The act before me proposes another
eratuity to the holders of the same stock. and IN
many cases to the same men, Of at least seven
millions more. This donation finds no apology
in any uncertainty as to the effect OF the act
On all hands it is conceded that its passage will
increase, at least 90 or 80 per cent. more, the
market price of the stock, subject to the payment
| of the annuity of 200. 900 per year, secured by
the act; thus adding, in moment, 0ne-fVurth t0
hts par value. 1t is not our own citizens only
mho are to receive the bounty Of our government.
More than eight millions OF the stock Of this bank
are held by foreigners. BY this act the Aneri.
can republic proposes virtually to make them a
| a present of some millions of dollars. For these
sratuities to foreigners, and to some of our own
Opulent citizens, the act secures no equivalent
! whatever. They are the certain gains OF the
present stockholders, under the operation of this
act, after making full allowance for the payment
| OF the Bonus.
Every monopoly, and all exclusive privileges,
are granted at the expense of the public, which
ought to receive fair equivalent. The many
millions which this act proposes to bestow on the
stockholders of the existing bank, must come
directly or indirectly out of the earnings of the
! American people. II is due to them, therefore,
il their government, sell monopoies and exclu.
sive privileges, that they should at least exact
! for them as much as they are worth in open mar.
ket. The value Of the monopoly, in this case
may be correctly ascertained. The twenty eight
millions of stock would probably be at an advance
Of fifty per cent, and command in market, at
least forty.two millions Of dollars. subject to the
payment of the present loans. The present va.
lue of the monopoly, therefore, is seventeen mil
lions Of dollars, and this the act proposes to sell
for three millions, payable in fifteen annual in.
staments of 100000 each.
Iii, not conceivable how the present stock.
holders can have any claim to the special favor
of the Government. The present corporation
has enjoyed its monopoly during the period s,i.
pulated in the original contract. If we must
have such corporation, Why should not the 90.
vernment sell out the whole stock, and thus Sc.
cure to the people the full market vaIue'ol the
privileges granted! Why should not Congress
create and sell the twenty eight millions Of stock,
Incorporating the purchasers with all the powers
and privileges secured in this act, and putting
the premium upon the sales into the treasury.
But this act does not permit competitions in
the purchase Of this monopoly. 1t seems to he
predcaied on the erroneous idea, that the preseOt
stockholders have prescrptive right. not only
to the favor, but to the bounty of the Government
II appears that more than a fourth part of tne
stock is held by foreigners, and the residue is
held BY few hundred Of our citizens. chiefly Of
the richest class. For their benefit does this act
exclude the whole American people from compe.
tiun in the purchase Of this monopoly, and DIS.
pose OF il for many millions less than It is worth
This seems the less excusable, because some OF
Our citizens, not now stockholders, petltioned
that the door of competition might be opened and