Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-07-10


per cent. per annum; and, after accumula-
ting reserved sum of two millions of dol
lars, to cover losses and contingencies, the
excess beyondl that seven per cent. is 10 be
paid into the public Treasury. And what
ever excess remains at the end of the char
ter, beyond the reimbursement to the stock
holders of the capital stock, is also to be
paid into the Treasury. If the dividends
fall below the seven per cent. during any
year of the charter, the deficiency is to be
made good out of the surplus previously
paid into the Treasury. The effect of this
provision is, to make permanent and in
variable seven per cent. bank stock, assum-
ing that the administration of the Bank is
conducted with integrity and ability.
3. The debts due to the Bank are re-
CURED not to exceed the amount of the cap
ital stock actually paid in, and rs per cent
thereon, which is greater restriction than
usual.
The total amount of debts which the
Bank is authorized to contract, over and
above the deposites, is not to exceed twen-
ty-fve millions of dollars, which is also
greater restriction than was placed upon
the late Bank of the United States.
8. The publicity which is required of the
general condition of the Bank, and the full
and complete exposure to committees of
Congress, and to the Secretary of the Trea-
sury, which is amply secured, of all the
books and transactions of the Bank, nclu-
ding private accounts.
4. The publication Of the renewal of any
loan; thus putting an end to all mere ac-
commodation paper, as far as practicable,
and combining the Bank to fair business
transactions.
And 5. The Bank is prohibited from ma
king any further discounts on loans when
ever its notes in circulation exceed three
times the amount of specie in its vaults.
To protect the community and the stock
holders against mismanagement of the
Bank, several provisions have been inserted,
which it is hoped have been effectual.
l. No paid officer of the Bank is to re-
ceive loans or accommodations in any form
whatever.
2. Securities are provided against abu-
sive use of proxies, such as that no officer
Of the Bank can be proxy; no proxy can
give more than 800 votes; no proxy to be
good which is of longer standing than
ninety days, &c.
8. A prohibition against the Corpora
tons transacting any other than legitimate
banking business; excluding all dealing in
stocks, and commercial operations.
4. A requisition that a majority of the
whole number of the Board of Directors
shall be necessary to transact the business
of the Corporation.
5. Ample power to make the most thor
ough examination into the condition and
proceedings of the Bank, down to the &C
counts of individuals, by totally removing
from the Secretary of the Treasury and
committees of Congress the veil of secresy.
And 6. By denouncing and Furnishing as
felony the crime of embezzlcment of the
funds Of the Bank when perpetrated by any
of its officers, agents or servants.
Concurring entirely in the sentiment ex-
pressed by the Secretary of the Treasury,
that many wise and patriotic statesmen,
whose opinions are entitled to considera-
ton and respect, have questioned the pow
er of Congress to establish National Bank;
and that it is desirable, as far as possible, to
obviate objections and reconcile opinions
the committee have attentively and earnest.
| ly examined the provision, incorporated in
the draught of the bill of the Secretary, in
regard to the branching power of the Bank
and they would have been happy if they
could have reconciled it to their sense ot
duty to adopt it. But, after the fullest con
sideraton, they have been unable to arrive
at that result
1t was not without some hesitation thai
the committee agreed to the location of the
Bank in the District of Columbia. Thi.
they did because they believed that the util
| ity of the Bank did not so much depend
upon the place Of its location as upon the
capital, facilities and powers which should
be given to it. But to isolate it in this Dis
trict, without giving it any other branching
power than such as it might deserve from
tie consent of particular States, would be
to create an enormous District Bank, devoiC
of ef1ectual national character. Such g
bank would be bank only of the District
of Columbia, and its offices of discount and
deposite would be nothing more than banks
Of the States which might allow them to be
planted within their respective limits. Fol
all national purposes Congress might as
well re-charter one of the existing District
banks, enlarge its capital, and give it au,
thority to establish offices of discount and
deposte in any State that would permit il
to be done.
The committee believe that the capital Of
a bank so constituted would never be taken
and that, if taken, the institution would be
wholly unable to accomplish the great anc
salutary purposes for which it is desired
| and Shnnld be deSirnnd