Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-17

bcr retained Of examining into the proceedings OF The
bank and thus virtually promising The community .ne
exercise Of supervisory power, shouio not ~ "U
nent when il is most needed for the public welfare oe
neglected or renqushed though their own dIfecl
incres, has CEASED by the bargain they have made
Ncr is it with reference alone 10 the late or present
Bank OF the u Sntes that such legislation is necessary
The course adoued by those institutions may be pursued
bv every other Banking institution chartered by Gun
prcss The issued in the District "t CoIumo.a
under the authority Of charters from the u STAIRS may
without grenttr improperly, be reissmfd and circulated
after those charters have expired either by The panHs
themselves, by trustees to whom they may transfer
them the day before their corporate privileges terminate
That some law should be passed 10 prevent and obviate
such proceeding, cannot admit OF question
In passing such law 1t is the duty Of Congress care
fy 10 avoid any provision which should affect the cltl
zen who holds receives these notes IN the Ordinary
course of trade who passes transfers them IN good
faith from hand 10 hand 1t Is only those who hold or
receive them with the and for The purpose OF re-
deeminG them who pass and circulate them when they
know that they have come into their hands Tor such
purpose and under such obligations; and who neglect OF
refuse cancel te;n when lhey are hound To do SO ny
The intention OF the charter under which they orr
gnaiiy made.
Considering this subject therefore, with reference 10
thosr relations of the u. S. towards The late National
Bank and the community which are derived from lie
charter Of that institution prompt and efficient inter
ference Of Con ress is unquesonably demanded lhey
hive derived large profits from the circulation OF these
notes for the redemption Of which their share OF the
capital was pledged and they have now Withdrawn
that share Of The capital from It's former liability hcy
prescribed by the charter that all banking privileges
among which was that ofissuing these notes, should ter
inmate at certain PERIOD and That period now passed
they reserved 10 themselves the right and thus imposed
on themselves tie duty, Of examining That The spn!a
lions Of The charter fulfilled, and 10 do ms the en-
aclment Of such law is now absolutely required
But there are other considerations bearing directly on
the present situation Of the commerce and business ol
the country and on the respect due from Congress to
the laws aud policy Of the individual States, which
oupll not 10 be overlooked 1t is fact that the present
Bank of the u S. is in actual possrssicn having them
within its own vaults and under its control, OF fund
of bank the amount OF about o,oO0ooO over
and above those in circulation issued 10 certain ex'
tent on the faith Of the United States, and bearing
corresponding credit There appears, at least IN MA
ny portions of the country. strong disposition on
the part Ct the banks, 10 resume specie payments
but the uncontrolled possession OF this vast amount
of paper money will enable the present Bank OF the
United States, il disposed. TO rctaId, perhaps 10
preycnr them from ctfecling that laudsble and desira
| bic object. 1t holds in It's hand, Under the apparent
sanction Of Congress, immense fund, which II can
transport 10 any part Of the country at its pleasure, and
purchase the notes of the State banks to be returned
upon them eu massr al the very instant they shall en-.
deavor TO resume What is there to prevent this nslI'
tuition from sending New Orleans one or two millions
of these notes, placing them in The possession OF any
local banks or its agents, and exchanging them Tor the
notes Of banks preparing 10 resume, so that they may
be used TO crnbarass and retard their efforts as soon as
they are commenced II cannot be said that this Is
proceeding arising from the large capital OF The present
Bank of the United States, aud which is not conse'
oue Mt upon the issue Of its old and uncanceeG notes
is the possession Of those notes which eXcmptS It from
danger in Tie adoption of such COURSE independent
of the additional credit attached TO them from being
made under national charter, they are now circulated
without the responsibility that attends those issued un-
der the charter Of The State; and is to this cause that
may be attributed the remarkable fact, disclosed in the
Statement, Of the Bank the 9th January last, that
while they had hand fifteen millions eight hundred
thousand five hundred and seventeen dollars and seven
~ Three cents OF the old notes million four hundred
and three thousand ninety dollars at their State bank
agencies and millions seven hundred and thirty
three thousand nine hundred and ninety dollars IN Tran
situ making altogether no less sum IN their actual
possession and under their control than nineteen millions
nine hundred and thirty seven thousand five hundred
and ninety dollars and seventy three cents OF these
old notes; when they had Also in circulation among The
community, the further sum OF SIX millions Two hunured
and twcniy thousand four hundred and sixty.seYen
dollars and seventeen cents Of these same old notes.
being an aggregate Of The notes Of the expired corpora
ton of twenty millions hundred and lilly eight
thousand and sixtysx dollars and ninety cents yet, at
the same time the whole outstanding circulation OF their
own notes. exclusive Of post notes. only amounted 10
five hundred and forty seven thousand six hundred dol
lars and forty five cents, about the foeth part Of the
old notes in their hands and in circulation.
On every issued under The present State charter
Of Pennsy vana, the holder las by the State law sum-
mary proceeding, if it is not redeemed on demand more
than this the bank is bound in of REFUSAL TO pay
the high interest of ~ per cent; and if such refusal be
continued beyond stated period there Is provision Tor
the speedy forfeiture Of its Charter.
But how is with these notes of the late bank, OF
which it has obtained possession: 10 them, none OF
these penalties of the law OF Pennsylvania will apply;
it has received them. and promises 10 redeem hem as
mere trustee and OF refusal, the holder, II Is pre-
suned is to be driven 10 the tedious process OF suit
in chancery or other form Of protracled legal pro-
ccednr to obtain that ayment which he could enforce,
,bo had oop nv n a n
rapid and compulsory mode Thus It s, that so long as
Congress permits this institution TO keep and issue these
notes gives it the power Of circulating paper cur
rency free from The restrictions and safeguards which
the State that chartered it meant 10 impose il enables it
10 control the efforts of other banks for the resumption
of specie payments, and leaves the citizen who takes
circuates these notes, without any speedy protection
and redress.
But again: This voluntary trustee Of the National
Bank received its charter from the State Of Penn
syvana on the expressed condition that should issue
bank note of less denomination than ten dollars
It is presumed to be part OF The policy OF that wise
State that the circulation Of so large an institution
should be so limited. The neglect of Congress has de-
feated this sauary policy; il has ven to the trustee
the and power of doing that which the Stale
Of Pennsylvania intended should not be done; five dol
lar largely issued by the Bank of the U. s.
chartered by ylvania though the Legislature of
that Stale declared they should not be. Congress
not be justified in permitting this II is due TO the
State Of Pennsylvania that they should respect her laws
that they should not oy any omission on telf pal per-
nit power derived from them 70 be exercised rs TO
lhwarl her designs. While it is the solemn and evident
duty Of Congress not interfere with the institutions of
the States, but 10 leave them pursue the policy Of The
Legislatures by which they created and 10 answer
to those authorities for every violation it is not less lis
duty prevent that from being done indrectly either
by its permission or its neglect which virtually nrnges
the law and policy Of the States. Righ!fuy may The
State Of Pennsylvania complain it, after strictly prohi.
biting The issue Of notes Of denomination less than ten
dollars by this institution the sanction or the neglect Of
Congress should enable it 10 issue and circulate millions
Of five dollar notes.
The following bill is, therefore, respectfully reported
to the Senate:
BILL 10 prevent the issuing and circulation of the
bills notes. and other securities Of corporations created