The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1841-07-29
Debate in the Senate.
speech OF Mr.. RiVes,
I0F HERGINIA.l

oF VIRGINIA.,
DsiiEeree n llss Sepaie " lie Unaed S.stes
July !, ISL. n issor IL "a hneadseat pso.
posed b hiaa q The Bank Bill
No. Rives moved 10 strike out OAR, a
ihe 10Th article Of me IIlh section Of Inc
bill. and % insert the following
"Ihai lhe SAID corporation shall e.
iablish competent Office or discount and
deposit in any State. BY the assent of the
Legislature of such State, whenever The
direeias may think filso 70 do; and when
established. DIE Office shall not be with
drawn without he assent Of Congress;
and lhe said corporation shall have power
70 commit The management Of the said
Offices and the business thereof respective
iy, 70 such persons, and under such regula-
lions. as they shall deem proper. not being
contrary n the law or constitution Of the
bank; or, instead Of establishing such
Offices, IL shall be lawful for the directors
Of the said corporation from time 20 time
% employ any individual. agent, or any
other bank or banks, 10 be approved BY
the Secretary Of the Treasury, At any
place or places that they may deem safe
and proper, 20 manage and transact the
business proposed as aforesaid, other than
FOR the purposes Of discount, and 10 per-
form the duties hereinafter required Of
said corporation, to be. managed and
transacted By such officers under such
agreements and subject 10 such regulations
as they shall deem just and proper"
The amendment being read, Mr.. Riyes
remarked that the Senate would perceive
il was in the precise words Of the project
submitted 10 the Senate some time since
BY the Secretary Of the Treasury. IL
required the assent Of the Legislatures Of
the States 20 the establishment Of branches,
or Offices Of discount and deposit, within
their respective limits. This principle
had been preierIniited in the bill reported
by the Senator from Kentucky, mir.
clay,) which expressly empowers the
directors Of the corporation to establish
offices Of discount and deposit, wherever
they think III. without regard to the con-
sent Of the States. The object OF the
amendment Il 10 restore the principle Of
the Sscretary's project.
Before he proceeded TO the considera-
ton of the amendment, however, Mr..
Riyes said he begged 70 say few words
in regard TO the general question involved
in the measure now before the Senate.
All would agree that something must be
done 10 pat an end 10 the present an
satisfactory and eninently injurious state
Of, things. The necessities Of the Gov
ernmentsand the de.anged and suffering
condition Of the country, equally demand
i. A fiscal agency Of some sort or other
must be constituted 10 conduct the varied
and important concerns Of the Treasury,
and at the same time to exert saluiary
and restorative influence upon the general
currency of heeoanlry. The Sab-Trea-
sury system Of the late Administration.
il is now frankly admitted by many Gifts
advocates, has been decisively repudiaied
by the deliberate judgment Of the nation;
and, in obedience to their voice, bill for
its repeal has been recently passed by a
large majority Of this body, which will,
doubtless, soon become the law of the
land. What; then, is to be substituted!
In former periods of our history, the en-
ployment of State Banks had been con-
sidered as the true and legitimate alter
native Of a Bank Of the United States. In
1891, when the Republican party of that
day opposed the establishment Of the first
Bank OF the United States, and again in
1911, when they resisted and defeated
its charter, they, with undivided senti-
ment, pointed to the State Banks as
furnishing the proper and sufficient means
for conducting the financial operations of
the General Government without the
necessity ofincorporating national insti-
tuition.
Mr.. Rives said he had himselfpreferred
that system, and still preferred it, if it
could have a fair trial--not because he
believed il perfect in all respects, but yet
capable, under proper regulation and
management, ofmeeting the leading wants
Of the Government and country, while it
steered clear of the fundamental objection
of an assumption of unconstitutional pow
er, and avoided that concentration of mo-
neyed influence which had always made
national institution an object Of Republic
can jealousy in this country. Mr.. Rives
said he firmly believed that if the party,
which adopted this system on the removal
OF the public moneys from the Bank of the
United States in 1893, had remained faith
full to tiff they had not wantonly or un-
wisely betrayed il into difficulties-or
even after il had been thus involved in
embarrassment, mainly by the errors Of
the Government, if they had pursued the
eonseryatiye Understanding policy Of Dali
las and Crawford towards the State Banks
| in similar but far more difficult crisis,
he system would, at this moment, have
been in vigorous and successful operation,
and have answered every just expectation
/ al. .N,,.orts IF