Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1835-01-26
POLITlCAT..
From the Phiiadelphia National Gazntc.
BANK OF THE UNITED STATES

BANK OF THE UNITED STATES.
Report of the Finance Committee.
We purpose to give, in short space as
possible, the substance of the Report of the
Committee of Finance of the Senate on the
Bank of the United Staes. The Commit
tee begin by the declaration that
Imy deem II pr per 10 :, tha', III he exam
'na''on which they have mad', every fac,Iitv was
all "d"d by the Officers Of the institution which the
| committee could have desired. No hesitation or
| reluctance was manifested IN rnshlns any book
| or paper which W req 'lred aud every avenue TO
! Ia" 'nI free investi .auon, MT only AT III bank
bat at the several branches visited by the com.
nj tee. OR any member Of it, was promptly aid o.
pen
They then commence with the enquiry
whether the Bank has uiolatcd its charter.
1t has been accused of doing so in three
ways-by hdrng Committee of Er-
changc-hy issuing Branch Drahs-and
by the Contract Nth Hessrs. Barring a.
bout postponing the Three per Gents.
These are therefore examined in order. OF
the expcdiency Of the Committee of Ex-
change, they say
. he losses To me bank, through tho operations
# the Exchange Committee, have bern remarkably
small, and would seem sroosly, if not conclusiveIy,
10 imidy that the appointments ma .c by the pr, ST
i ~, of tho b., H. of members for that commute ,
| deserved any thing rather thar censurr. The rom.
miuec have perceived no concealmcnr, with or " il =
! nu fraudulent intent The proceedings of the Elk
hangc Committee are submitted 10 the board of dr.
rccors, bv virtue of whose resolution the commit
tee authorized 10 act: and II has been slok
u,u cxls,rn"e 10y The fir, OF the bot r 50, whene,.
| IL el, n b. md Inc hot, ,f ne
| authority, it my be restrained AMI If found 10 b
useless or perniclons, the committee itself may be
,Iroga,cd. Much Inconvenience would arlse one,
| having bill ~ exchange, either domestic or for
ign, compelled 10 wait fo the regular discount
| lays nr'o,r he could dispose nf it
And rs to its conformity with the charter,
they end a conclusive argument by dcclar-
ing that
. The language Of the bank charter is olmo Il in
substance the language employed in the institution
III Iii United States in reference the Two Houses
| nf Congress which declares that : a majority (oi
each house) shall be necessary 10 constitute quo
| rum To do business With MS much prorricy might
IT b. urged that the Senate, or House of ReIresen-
t-tivcs, had violated the constitution by crcaiins
committees, or appointing agents 10 execute the law,
rs that the directors seven of whom arc necessary
r the transaction of business had violated Their
4 chart r bv the q exercise nf u sinilh power.
?. As to the Branch Drafts, their history
is given as .ol,ows:
n i" 1t was at go ~ day considered by the bank
- DC Of much imporl nee thai 8 ,me ot1er person
,ha, the pr sIcnt and asher should be authorize
70 sign notes intended Tor circt Luton. II was H'w
ever, then believed that such authority conlh only
he impaired through an amcndmrn, OF the chartc
. by act Of Corgr S. Accordingly. in the yci
1918, an application was formally made 10 Con
yrcss for an rletaon of the charter IN this parcn
r, which arpca ION was subsequently repeated u
1920. 1923. and again in 1927, through the agenc'
of the rresiden, Of thu bsnk. Congress did not &C
: nehnitvcly on he subject, II came then TO be SUI
gcstcd that the same purpose might be answered u
nno her mode through the ms rnmentallly OF drAi
drawn by tho branches on the parent bank. Use
appendix.) The subject was submm'tcd 10 'h'e
counsel learned in the law, inc OF who'' was
9 the time Attorney General of the United states
who c,ncnrred in the opinion that the oi"k won
no, be guilty. Of Il violation otis ch'r'e' should II
= ,'om tho c ,ntcmrateh n, assure.
, The Committee are divided as to the orr
ginal right of the Bank to Issue then
:. They give the arguments on both sidcs
and conclude thus
"These views appear to be sustained oy oec'
lons Of tho Urned States courts where mas ooe