The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-06-05
REMARKS OF MR.. CLAY,


signed by number of persons, praying for the es-
adjustment of Bank OF the United States. 1t was
similar to several other petitions which had been
presented to the Senate, or 10 the House, during
the present session, praying for the same object
They afford evidence of deep and returning con-
victon among the people, of the utility of such an
institution.
T Whilst am up, CONTINUED Mr. Clay,) with the
permission of the Senate, | beg leave to submit a
few observations upon this subject There is rea-
son to believe that much honest misconcePtion and
some misrepresentation prevail in regard TO It, which
wish to correct 1t had been supposed that those
who deslrous of seeing Bank of the United
States established are anxious that charter should
be granted to existing State institution, which
has eminent individual at head, and thar this
was the sole object of all their exertons. Now
wish, for one, to say, that have no such purpose
in view. entertain for that gentleman very high
respect. l believe him uncommCnly able, pro-
foundly skilled IN finance, and truly patriotic.
There is but one other person, connected with the
banking institutions of the country in whose ad-
minisraton ola Bank of The United States should
have equal confidence with MIR Biddle that is AL
bert Galatn who, am glad TO learn, at an advanc-
ed age, retains, in full vgor, The faculties of his ex-
traordlnary mind.-Ihere may be other citizens
equally competent with those TWO gentlemen but
do not know them, am not acquainted with their
particular qualifications.
But 1t is not for any existing State bank, or any
particular individual at its head, that am contend
| ing. 1 believe the establishment of Bank of the
United States is required by the common good of the
| whole country ; and although l might be wiling
ifit were practicable, to adopt existing bank as
the basis of such institution, under all clrcum-
stances, think it most expedient that neao bank
with power to establish branches be created and
chartered under Congress. My friends (as far as
know their opinIons) and l are particularly
attached to this or that individual, to tins that
existing bank, but TO principles, to the thing itself,
to the institution to a well ganized Bank of the
United States under the salutary operation of which
the business of the country had eatly prospered
and we had every reason to hope would again revive
and prosper. And presumng upon the indulgence
of the Senate, will now take the liberty 10 sug-
gest for public consideration, of those suita-
BILE conditions and restrictions under which it
appears to me that it would be desirable establish
new Bank
l. The capital not to be extravaganty large, but
at the same time, amply sufficient to enable it to
perform the needul financial duties for the Gov
eminent; to supply general currency of uniform
value throughout the Union and TO facilitate, as
nigh practicable, equalization of domestic ex-
change. suppose that about Gfty millions would
answer ali purposes. The stock mi ght be divided
between the General Government, the States, ac-
cording to their federal population, and individual
| subscribers. The portion assigned to the latter
10 be distributed at auction or by private subscrlp-
ton.
g The corporation, in the spirit of resolution
recently adopted by the General Assembly of the
State, one of whose Senators have the honor to
be, TO receive such an organization to blend, liz
fair proportions, public and private control, and
combining public and private interests And in
all foreign influence, nonresident foreigners, to
be prohibited not only from any share in the ad-
m'nistration of the corporation, but from holding,
directly or indirectly, any portion of its stock AL
though do not myself think this latter restriction
necessary. would make it, in Difference of honest
preludices, sincerely entertained and which no
practical statesman ought entirely to disregard
The bank would thus be, in its origin and continue
throughout it's whole existence, genuine Amer-
can institution.
B. An adequate portion of the capital to be set
apart In productive stocks, and placed in perma-
nent security, beyond the reach of the corporation
(with the exception of the accruing profits on
those stocks) sufficiently to pay promptly, on any
contingency, the amount of all such paper, under
whatever form that the bank shall put forth, as
part of the general circulation. The bill note
holders, in other words, the mass of the communi.
~, oush to be protected against the possibility of
the failure or suppression of a bank. The supply
OF the circulating medium Of country is that fac
ulty of a bank, the propriety of the exercise of
winch may be most coEroverted. The dealings
with oank' OF those who obtain discounts, or
make deposits, are voluntary and mutually advan.
tageous, and they are comparatively few in mum.
Der. But the reception of what is issued and used
as part OF the circulating medium of the country
Is scarcely voluntary act, and thousands take It
VINO have no other concern whatever with the
BANKS The many ought to be guarded and se-
cured by the Of the Legislative authority; tho
vigilance OF the few will secure them against loss.
thlnk this provision is disideratum in our A.
merlcan banking, and the credit of first embody.
ing 1t In legislative act is due to the State of ~
York
a. Perfect publicity to the state of the bank
at all times, including, besides the usual heads of
information, the names of every debtor to the
oank' whether AS drawer, endorser, or surety, Pc
flodicaily exhibited, and open public Inspections;
Or, that should be found inconvenent, the right
TO be secured to ascertain at the bank the nature
and extent of the responsibility of any of its custom
ers. There is no necessity to throw any veil of
secrecy around the ordinary transactions Of bank.
Publicity will increase responsibility, repress favor
tsm, insure the negotiation of good paper, and
when individual insolvency unfortunately occurs,
will deprive the bank Of undue advantages now en-
effects of the nsolvent.
s. A limitation of the dividends 30 az not to au.