Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-05-31
Twenty-GHh Congress :
[rInsr rREouLAa SESSION.
NATIONAL BANK-pisTRicr BANks--Psri
TIoNs-THE END or f.BooNE--isDIAN
A NEUTRALITY-SUSPICIOUS.


A H0sTiLiTIEs--APPROPRI
- TtoS bill.
In SESaTE Monday. May 81, Mr.. Clay
presented petition for the establishment OF
a National Bank. lie said he would improve
this occasion to make some explanations up
on this subject, subject upon which there
had been much misre prese entation.
II had been asserted, that his sole object
was to extend tho charter ut the present
Bank in Philadelphia. After expressing him
self in terms highly complimentary to Mr..
Biddlc and Mr.. Gallatin, he added, that he
was not in favor Of This ar that Institution !;
ftltis or that individual but that he was for
Bank, and, perhaps, under all circumstances
b II would be most expedient to have on entire
new bank.
lie then said, while ke was up, he would
throw out few of those conditions and re-
strctions which he should deem proper in
such an institution. lilo was for an ample
capital abont fifty millions of dollars, to be
owned partly by The United States. partly
BY the States, and the balance by individual
citizens.
In Difference to prejudces, which it was
known existed in some quarters, he would
have no foreign stockholders. II would
thus be a genuine American institution.
any contingency, an adequate amount OF the
capital should he invested in stocks, and set
npart for the rede mpiion of the notes. Thus
the great mass Of the community would be
protected against lose. The acts of the de-
positors in the Bank, or Of borrowing money
from il, were voluntary acts. Ii was not so
with the bill holders. They ought, therefore
10 be secured.
lie was for throwing open the books of the
Bank to the public, so that the extent OF oc-
recommendation granted To- anv drawer or en-
dorser might be known. There was no ne
cessity for the secrecy which was observed
in the case of mortgages, The records were
open 10 cvery man. THIS draw ing aside the
veil of mystery would have good effect us
to the extent OF loans which the bank might
make. II frequently happened that when
failures took place il was found that tho banks
possessed all or nearly all the property of the
bankrupt, rnd that while they were amply Sc.
cured the public got nothing. ii would
check that system OF business.
lie would limit the amount OF dividends to
- per cent per aDnum.
He would also put restriction upon the
charge which they should be allowed I"
make upon every check or drait, drawn by
them from one city or place upon any other
CITY or pace lll iHc OHIlcu u" e"'S
way they would contribute to the eqnallza
ton of the domestic exchanges.
lie would also restrict. as far as possible,
by special provisions, any interference OF
the President Of the United States with the
bank, or oil the bank with the elections OF the
country.
The constitutional question hc won,d not
discuss. 1t ought no longer 10 be consider
cd an open question. Four times Congress
had affirmed the existence of the power To
create such an institution. lt-had been slis'
taued by Washington, the Father Of his
Country, by Madison, the Father OF The Con
situtiou, and by Marshall, the Father OF the
Judiciary.
Strong, said Mr. Clay, IA are my convic'
tons OF the necessity of such an institution,
I am equally well convinced, that under cx.
istiny circumstances it would be waste oi
time to make the proposition. l have no
such design. l believe majority ol Inc
people arc now for bank but as SAID Oh
former occasion, we must wait untli they
call for it and then conform our VIII to their
wishes fairly expressed.
Mr.. Buchanan said, we have now the TACT
plainly presented, that the old bank is to be
abandoned aud new bank to be chartered,
and located in the city of New York. pro-
Of New York. IT would render every other
city tributary. 1t would be Glghtlng mil
dew upon every city in tho Union. He was
opposed, he said to any and every bank OF the
United States; but Ilthis curse must be IN
fic,ed upon the country, he was for having
il located in Philudelphlu. There never was
he contcnded, such n stride towards conso!i-
dlilon. as the proposition Of the Senator from
Kentnckv. Nothing had been said, how
ever. by that honorable gentleman (lr Clay)
"a 10 the amount of specie that should be re-
quircd for the redemption OF their paper
He wished To hear something on that
point. am glad said he that the Senator
has boldly brought forward his measure be-
fore the country The issue is now between
the old and the new bank that is 10 be estab-
lished.
Mr.. Clay said he had offered no PROPOSE
ton to the Senate. lie was surprised at the
gratuitous assumption OF the honorable gen
tlcnlan. lie says that there is 10 be new
bank established in the city of New York
He fMr Clay) had suggested no such idea.
He had presented no plan. lie was not Tor
arguing cause before packed jury
Knowing the settled opinion of the Senate
on the subject Of a bank, he had no Intention
of Offering any plan. His sole object was to
Nor had he decided in his own mInd, us to
the proper location. Whether Charleston,
Richmond, Baltimore, Philadelphia, N. York
or Boston, was the most suitable place. Mr..
Clay reiterated that he went for bank; and
the charge that he wished it to be under the
management Of any particular individual was
unfounded.
10 respect TO the amount Of specie to be
required, he said the details Of Il bill would
provide for that. lie had voted, in the case
of the district banks, that they should hold
one specie dollar for every three dollars of
paper that they issued. This may be a prop
or limit. II may not. But, said he,-l will
90 as far as any mon, in guarding against an
over issue of paper, which may result in q
sioppngc Of specie payments. One Of the
greatest curses that can befal the country is
an irrcdeemable paper medium, whether is.
sued by the government or by banks.
Altcr some further desultory remarks by
AIR buchanan and MIR Clay, the petition was
laid on the table.
The bill for the rc.charter Of the banks in
the District OF Columbia was taken up, aud
the question being OF the following substi-
tute for the bill offered by Benton:
MI. L. .I.a.,..s, tho Earmaraf md Mo-