Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-05

pondence, we embrace the opportunity of throwing
before the amiabe blockheads Of which Congress is
generally composed, plan of resuscitang the credit
and finances Of the country in less time than three
months.
PRoJEcr roR A NArosAL BANK.-The capital
should be One Hundred Millions OF Dollars
The right to subscribe 10 the stock should be
equally and properly aPpotoned to all the citizens OF
the United States.
Subscriptions should be made by bonds and mortga-
ges on real estate third part the value the bonds
to be payable on before the maturity Of the charter
No original bond and mortgage should be cancel
led without the substitution of bond and mortgage
equally secure
There should be central or Mother Bank at New
York, also Branch Bank here, and one or more
branches in all States which would permit the same
The government should have the right of appoint
ing three directors of the Mother Bank the other d.
rectors should be elected by the votes of a majority
of all the stockholders
The directors of each branch should be chosen by
the stockholders in the State, where such branch
shall be located.
The directors of the Mother Bank should have the
power to regulate the exchanges of the country and
TO attend generally to the organization and manage
meat of the branches, but should not have power to
receive depssites or to make loans.
The government should make its depostes in the
Bank and be allowed interest at the rate of per
cent per annum for all sums that may remain therein
more than six months.
The Bank should dsburse all moneys for the GO
yernment free of any expense.
The notes of the Bank should be receivable at all
places for the revenue.
The Bank should have the right of negotiating its
bills, bonds, or exchanges payable at any time or
place.
The Bank should always pay specie for its notes,
except that in time Of war the government may au-
thorise temporary suspension
Stockholders should be preferred in loans TO a linn
tied extent on the hypothecation Of their stock with
their own notes without endorsers.
When the income nett profits Of the bank shall
amouar to more than per cent per annum, the rate
of interests on loans shall be reduced to keep
the dividends within that rate.
The active capital for banking purposes should
be obtained by sending the bonds of the bank to Eu
rope payable at any time before the maturity of its
charter bearing interest the rate of which
would sell al or about par, and command all the spe
cie necessary for very extensive operations.
The bank could establish unlimited credit in Eu-
rope by which could furnish exchanges all times,
and thus save the shipment of specie in any of
exgency.
Suppose the bank should commcnceits operations
on a borrowed capital Of fifty millions of dollars at
an interest of per cent per annum that amount Of
capital added to circulation and deposites, autho
rise loans to the extent Of hundred millions Of
dollars, which, at the of per per annum,
would gain four and half millions of dollars per an
NUN, or Al per cent on the whole capital subscribed
besides the profits of exchanges which would add
greatly to the profits Of the bank. The stockholders
would thus realise dividends, profits equal to the
whole capital subscribed, withou, the actual advance
Of any capital.
With such bank, money could awaysbe obtained
at per cent less, to extent commensurate with
the business or wants Of the community.
The public could never suffer loss by want of conf
dence or security in the circulating medium Of the
country
Merchants would never find difficulty in negocia
tng their exchange or in collecting their debts any
part of the United States,or making timely reman-
ces to Europe under any and all circumstances.
The government could at all tunes disburse mo
neys at any place wanted with perfect security free
of expense.
Farmers and mechanics would be able to avail
Of the grea, advantages of subscribing the stock
eonld obtain loans, when wanted, on their stock,
without the disagrecabe and hazardous consequences
Of giving cndorscrs on their notes. They could
moreover have all the increase, beneficial use of
their estates, and receive large dividends from the
bank, and would thereby be enabled to manage their
pccsniary affairs with great and safety, without
the inconvenience and dangerous reliance on brokers
and money lenders
The foregoing suggestions are submitted without any
party considerations and although opposed TO bank
ing institutions, as they chartered and managed
in this country yet the winter convinced that the
cxi6encIes Vt the times require prompt and general
acton in favor Of national medium that would be
recognized every where good, and that il is impos-
sble to effect the object any other way than by the
establishment Of a National bank.
The writer " aware that the principles recognized in
the foregoing project, at war with the general
theories Of banking Isddown by the modern tiers
and political economists Of Europe; yet this country
beng unlike all others 10 regard TO resources and pro-
ducnons which are Of character to insure the gradu
al and certain Increase of great wealth and specie
cspiial he IS convinced that bank chartered upcr
the principles projected would efTsciuay regulate thu
exchange OF the country, and produce immediate re-
sef, and the most happy and profitable results 70 oil
classes OF citizens bank thus chartered could com
mence us operations m three months and without The