Staunton spectator. [volume] (Staunton, Va.) 182?-183?, 1832-07-20
United States, Bank.

DENT OF THE L. STATES.
hEruRNING THE BANK BILL TO THE
SENATE WITH HIS oBJ EcTioNs.
2b the Seaats:
The bill "to modify and continue" the
act, entitled Dan act 10 incorporate the sub
scribers 10 the Bank of the United States, :"
was presented to me on the 9Th July, instant.
Having considered it with that solemn re
gard 10 The principles o! the Constitution,
which the day was calculated TO inspire, and
come 10 the conclusion that it ought not to
become law, herewith return it TO the
Senate, in which it originated, with my OBJ
jections.
A Bank of the United States is, in many
respects, convenient for the Government,
and useful to the people Entertaining this
opinion, and deeply impressed with the
belief that some of the powers and privileges
possessed by the existing bank, are unau-
thorized by the Constitution, subversive
Of the rights Of the States, and dangerous to
the liberties of the people, felt il my du-
sy, At an early period of my admins
tratioD, 10 call the attention of Congress 10
the practicability OF organizing an insitu-
lion combining all its advantages, and obvi.
sting these objections. l sincerely regret
that, in the act before me, | can perceive
none OF those notifications Of The bank char
ter which are necessary, in my opinion, TO
make it compatible with justice, with sound
policy, or with the Constitution OF our coun-
try.
The present corporate body, denominated
the President, Directors, and Company of
the Bank ofthe United States, will have ex-
listed, at the time this act is intended 10 take
effect, twenty years. 1t enjoys an exclu-
sive privilege of banking under the author
.ity Of the General Government, monopoly
OF its favor and support, and, as necessary
consequence, almost a monopoly of the for
eign and domestic exchange. The powers,
privileges, and favors bestowed upon il in
the original charter, by increasing the value
of the stock far above its par value, operated
holders.
An apology may be found for the failure
20 guard against this result, in the conside-
ration that the effect OF the original act of
incorporation could not be certainly fore
seen at the time of its passage. The act be-
fore me proposes another gratuity 10 the hol-
ders OF the same stock and in many cases 10
the sans men, of at least seven millions
more. This donation finds no apology in
sny uncertainty as TO the effect of the act
On all hands Ii is conceded that its passage
will increase, at least twenty or thirty per
cent. more, the market price oft stock,
subject 10 the payment of the annuity Of
S20o, 900 per year, secured by the act thus
adding, in moment, one-fourth 10 its par
value. 1t is not our own citizens only who
are TO receive the bounty of our Govern
nent More than eighteen millions OF the
stock OF this bank are held by foreigners
BY this act the American republic proposes
virtually TO make them present Of some
millions Of dollars. For these gratutics 10
foreigners and some of our own opulent citi-
Lens, the act secures no equivalent what0-
yer. They are the certain gains of the pre-
sent stockholders, under the operation of
this act, after making full allowance for the
payment of the bonus.
Every monopoly, and all exclusive privi-
isges, are granted at the expense of the pub
lie, which ought 10 receive fair equivalent
This many millions which this act proposes
10 bestow on the stockholders ofthe existing
bank, must come directly or Indirectly out
OF the earnings Of the American people. 1t
is due IN them, therefore, if their Govern
ment sell monopoliss and exclusive privileg-
es, that they should at least exact for them
IS much az they are worth in open market.
The value ofthe 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 fortytwo millions of dollars.
subject 10 the payment Of the present loans.
The present value Of the monopoly, there
G0rs, is seventeen millions of dollar s, and this
the act proposes 10 sell for three millions,
payable in fileen annual inStalmentS Of
920O, 900 each.
|! is not perceivabls how The present
stockholders can have any claim 10 the Gov
ernment. The present corporation has en-
joyed its monopoly during tho period stipu
lated ID the original contract. II we must
have such a corporation, why should not the
Government sell out the whole stock, and
thus secure 10 the people the full market val |
ue Of the privileges granted? Why should |
not Congress create & sell the twenty eight
millions ofstock, incorporating the purchas-
srs with the powers and privileges secured
IN this act, and putting the premium upon
tbe sales into the treasury.
But this act does not permit competition in
The purchase Of this monopoly. 1t seems to
hs predicated on the erroneous idea, that the !
present stockholders have a prescripiive
right, not only to the favor, but the bounty
Of the Government. II appears that more
than fourth part of the stock is held by
foreigners, and the residue is held by few
hundred Of our citizens. chiefly Of the rich !
est class For their benefit does this act ex-
clude the whole American people from COM
re,ition in the purchase in this monopoly, |
sud dispose OF il for many millions less than |
il is worth. This seems the less excusAbls,
because some Of our citizens, not now stock |
holders, petitioned that the door ofcompeti- |
ton might be opened, and offered to take
charter on terms much more favorable to