Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-06-02


an existing bank the basis OF such an instiiu
tion, under all circumstances, l think II most ex
pedicnt that n new bank, with power TO establish
branches, be created and chartered under the
thority of COngress.-Mv friends (as far
know their opinons) and not particularly
attached to this that indiv idual. to this ta
existing bank. but to principles, 20 the thing itself
to the institution, TO a we-organized Bank Of the
United States, under the sclutary operation 81
which the business Of the country had 30 greatly
Prospered, and we had every reason to hope woald
again revive aud prosper.-And, presuming upon
The indulgence Of the Senate, will now take the
liberty to suggest, for public consideration, some
Of those suitable conditions and restrictions under
which ii appears to me that it would be desirable
to establish a new bank.
!. The capital not to be cxtravagantly large, but
at the same time, amply sufficient enable it Ia
perform the nccdful financial duties for the Gov
eminent, 10 supply general currency Of uniform
value throughout the Union, and 10 facilitate, as
nigh as practicable, the equalization OF domestic
exchange. l suppose about fifty million would
| answer all those purposes. The stock might be
divided between the General Government, the
States, according to their federal population. and
individual subscribers. The portioned assigned
to the latter to be distributed auction by
private subscription.
9. The corporation in the spirit of n rcsolu-
ton recently adopted by the General Assembly
Of the State, one Of whose Senators | have the
to blend, in fair proportion, public and private
control, and combining public and private inter
ests. And, in order to exclude tho possibility
Of tho exercise Of all foreign influence, non-res
ident foreigners to be prohibited not only from
any share in tho administration Of tho corpora
ton, but from holding, directly indirectly, any
portion Of its stock. Although | do not myself
think this latter restriction necessary, | would
make it, in Difference to honest prejudices, sim
ccreiy entertained, and which practical
statesman ought entirely to disregard. The
bank would thus be, in its origin, and continue,
throughout its whole exist :nce, genuine Ameri-
can institution.
3. An adequate portion oftho capital to be set
apart in productive stocks, and placed in perma-
nent security, beyond the reach Of the corpora
ton, with the exception Of the accruing profits
on those stocks, sufficient to pay promptly, in any
the amount Of all such paper, under
form. that the bank shall put forth
a part Of the general circulation. The bill or
note holders, in other words, the mass OF the
ought to bc protected against the
possibility Of the failure the suspension Of a
bank. The supply Of the circulating medium off
country is that faculty Of bank. the propr ety Of
The exercise Of which may be most contrOverted.
The dealings with a bank, Of those who obtain
discounts, or make dcpostes, voluntary and
u t,snily odv ambiguous aud they compare
lively few in number But tho reception Of what
s issued and used n part of the circulating
u
.ct. and thousands take it who have no other
concern whatever with the bank. The many
ucht to be guarded and secured By the Of
he legislative authority; the vigilence OF the /
ew will secure them against loss. think this {
revision is dcsidcratum in American
anking, and the credit, Of first embodying IN II
legislative act is due to tho State Of New /,
'ork. S
4. Perfect publicity as to the state Of tho bank
{ all times, including, besides the usual heads C
information, the names Of every debtor to the v
ank, whether drawer, endoser. or surety, per- s
ideally exhibited, and open to public inspection; S
+ IL that should be found incOnvenient the a
ght to be secured TO any citizen to ascertain at s
&c bank tho nature and extent Of the rcspunsi- C.
ili:y Of any Gifts customers. There ~ no nc "
pssity to throw any veil of secrecy around the h
Urinary transactions Of bank. Publicity will Il
'crcasc responsibility, repress favortism, insure Of
negotiation Of good paper, and, when individ SC
al insolvency unfortunately occurs, will deprive ii
'e bank of undue advantages nov enjoyed BY v,
inks practically in the distribution OF the CT III
cts Of the insolvent. III
s. A limitation Of the dividends 80 as not to er
,thorize than-per cent. to be struck This or
i'll check undue expansions in the circulating IN
edum, and restrain improper extentio0 Of q
lsiness in the administration Of the bank. an
6. A prospective reduction in the rate Of an he
rest to restrict the bank TO six per cent. fir
npiy, or, If practicable, 10 only 1--WE per cent an
inks now receive at the rate Of 1car 60 per dr.
mt. by demanding the interest in advance, and hi
charging for additional day. The reduc- hi
n may be effected by forbearing to exact any tn
nue., or, when the profits are likely to exceed no
9 prescribed limit Of the dividends, by requir- 90,
, that the rate Of interest shall be lowered he
that they shall not pass tina, limit. sh.
7. 4 restriction upon the premium demanded an
on post notes and checks, used for remistances INC
that the maximum should not be more than, tina
=, one cent between any two the remotest shs
nts in the Union. Although it may not be
Icticeblc to regulate foreign exchange. depend
as it does upon commercial causes not with
the control Of any Government, ] think
4 is otherwise with regard tc domestic ex- VII
ngc. 1t,
J. Every practicable provision against the ex- at
ises Of improper influence, on the part Of the tho
utive, upon the bank, and on the part Of the hig
H. upon the elections Of the country. The late hal
X Of the United States has been, ] believe, inf
It unjussly charged with interference in the era
ular elections. There is, among the public III
uments, evidence Of it's having scruPuIo0sly Pov
tanned from such interference. IL never did rlos
re thar to exercise the natural right Of self OBJ
ence by publishing such reports, speeches, and sim