Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1833-11-29
From, the Richmond Wing.
EXTENSION OF THE CHARTER OF THE
UNITED STATES BANK

i respectfully offer one or two suggestions, Tor
the consider alton OF all those who are willing to
contemplate public events apart from their parti.
san tendencies, and " it'll sole view to their e.
feet upon the great interests OF the country.
1t seems to be now ascertained that the char
ter Of the Bank Of the United States will not be
renewed, and, of course, that its business must
be wound up as soon as possible. Accordingly,
most Of the Offices have already begun to call in
their debts, and all the rest must soon follow the
example. The effect which this proceeding will
have upon the country at large will be sufficiently
apparen, from the following considerations:
The debt due to the Bank is somewhere be-
tween sixty and one hundred millions OF dollars,
am not accurately informed as to the amount,
but il may be safely assumed at sxty.fiVe mil
lions.
The charter will expire. by its limitation, on
the Sd of March, 1856 Two years beyond that
time are alo~ed, for the purpose OF enabling the
Bank TO sue for and collect its debts, dispose OF
its property, &c &C.. but it is not allowed to do
any other business.
Allowing, then, that the Bank has four years
and four months 10 close its concerns. and sup
posing the debt due to IT to be sixty ise millions,
il must draw in fifteen millions per annum. 1t
can scarcely be expected. however, that It will
defer the collection of its debts SO long; Tor, as
il cannot discount nor do any other business for
prof during the two last years, and as its ex'
penses must. Of necessity, continue, without any
material diminutiOn, it has the stronsest and
most evident interest TO close its business as ra
pidly as possible. We cannot suppose. there
fore. that il will draw in less than twenty five
per cent per annum, upon the entire amount OF
the debt due to it.
There are no means whatever bv which the
vast amount thus rapidly Withdrawn from circu.
Iation can be supplied. The present State Banks
cannot supply 1t; for. il they were to DO so, they
would be completely at the mercy Of the Bank Of
the United States, while that Bank would not be
permitted to show any mercy whatever. Sup.
pose, for example, that merchant who owes the
Bank of the United States ten thousand dollars,
should borrow that sum from State Bank. and
paw the debt Immediately the Bank Of the Uni.
ted State. becomes the creditor of the State Bank
for the whole amount and may demand it 10 sPe.
Gle. In this way, the State Banks might and
would soon be drained Of their specie. and being
unable longer to redeem their own notes, would
be, strictly speaking, bankrupt, or would be CON-
pelled, in turn, to dra1 10 their debts II isevi-
dent therefore, that the State Banks, so far from
increasing their issues, will, very generally, be
compelled to curiaii them; and thus the pressure
upon the public will be increased. No new
Banks can be created, with power to relieve this
pressure. Ills to be remembered that the mer.
CHANTS note ID due at the end of every sixty days,
and M new Bank can be put 10 operation 10 less
thau six months, or, perhaps, year The mer-
chant. ,herefore, cannot wait for relief from such
source. even il such new Banks were likely to