The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-25
AMOS KENDALL
TO THE ORIGINAL JACKSON MEN.
CHAPTER THlRTEEN.

CHAPTER THIRTEEN.
Mr. Kendall was the agent selected by Gen.
jackson to make the arrangement with the local
banks, for the transfer of the public monies from
the Bank of the United States.
Before we proceed to examine his personal
agency in the financial war, first on the United
States Bank, and next on the local banks, itmay
be proper to speak of banks and banking, and to
show the manner in which banks have be-
come identified with the business and property
of the country
And first propose to examine, the question of
what Bank is.
Banks are created by act of Assembly, authori-
zing all who subscribe and pay in so much money,
to elect certain persons, called directors, who
take charge of the funds thus subscribed and paid
in, to be loaned out at the legal rate of interest
1t follows that these directors but the
agents of the stockholders, who are authosed TO
use their money, under their charter, as the
stockholders themselves could have done without
the charter.
The purpose of bank is to lend its funds
This the Individual stockholders could do with
out a charter. So far as the lending of money
therefore, the charter grants no new privilege,
and gives no monopoly.-Because the privilege
of lending its fundsas a bank, given by the char
ter. does not authorize them bank, to do
what they could not do as individuals, nor does
it prevent any other person from lending money
But it is said that in addition to the funds ac
tually paid, these directors authorised to lend
out, or to sell the credit of the bank thus created
1t is this feature Of the bank that is called mo-
Dopoly.
Now let us examine this objection; and in the
first place, the right to lend sell its credit Is
not A. and B., or any private citizen, authorized
to lend or sell his credit? Is not this done every
day, and to great extent? Are there not per-
sons in every community, but especially in all
commercial cities, who lend or sell their credit?
If this be admitted-and it cannot be denied
then it follows that the privilege of lending its
own credit Is monopoly. That which all
others have the right to do, and from which no
one is debarred-is not, it cannot be monopoly.
But it may be said that the banks make a
business of lending their credit, and that they
can lend their credit when private individual.
cannot. 1 would ask whether tAis does no
prove that the public prefer the credit of tn
banks, because it is better, and that they use
because 1t is to be had cheaper than the credit
Individuals? If these questions be answered
the affirmative, it leaves but one other objectic
connected with this branch Of the subject, to
answered, and that is, that the individual stoc
holders are not liable for the debts of the ban
and that the bank may fail-the stockholders
i rich-and the public lose. This, we awal
is the strong ground of objection to banks al
banking and we therefore ask the reader
pause and examine the elements which cons
tute a bank. As the Bank of the United Stat
has been more assailed than any other, we sele
the following statement, as gwen in a report
the Legislature of Pennsylvania
Par value of the Stock. 600 Der share