The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-22

They might as well say, because they had met with
losses from individuals they would loan To them.
How did they occur When the old Bank sunk from
National to State institution il had great fu
ON hand which It sought out the mean of emplo wing
Hence loans were selected four or five per cent
That was the cause Ii would be an unwise restric-
ton to say that should lend TO any corporation
Mr.. WALKER said the enormous loans TO Bidde
We're when the Bank was IN its high career as a Bank
of the United States
Mr. CLAY; But in contemplation Of It's becoming
State institution.
Mr.. w ALkER said the Senator from Kentucky
nau sa'u they Were to leave all discussion to the drec
Tors OF the Bank and thus neglect all the lights OF
experience. This was the only time To impose on the
Dahh every possible restriction. lfthey had been i'm
posed on the present Bank, il would not now have
peeh mass OF insolvency. We told il was iIn-
Pofianl TO permit this institution TO make loans to
banks, 10 prevent their failure. He said If Bank
was IN such condition that ii could not borrow funds
elsewhere TO prevent their failure suspension, that
was 'he very reason foI this amendment That was
the object of the loans OF the old Bank 10 the Bank
OF Mississippi and they had resulted in losses of over
one million Of dollars. IL was entirely wrong to loan
out money for these purposes The Senator had said
ciiies-ihe city of " ashngton might want loans, but
although he friend 10 w ashngton, he thought
experience had demonstrated unsafe to make loans
10 her.
The vote was then taken, and the amendment re-
Jected, as follows
YEAS Messrs Allen, Benton, Buchanan, Calhoun,
Clay, of Alabama, Cuthbert, Fulton King, Linn,
McRoberts, Nicholson, Pierce, Sewer, Smith, OF
Conn, Sturgeon, Tappan, Walker, Woodbury.,
WI ght Young 20.
NAYS-M.ssrs. Archer, Barrow, Bates, Bayard,
Berrien, Clay, ofKy Clayton! Dixon, Evans, Graham,
Henderson, Huntington Kerr, Merrick, Miller, More
head, Porter, Prentiss, Preston, Rives, Simmons
Smith, OF la, Southland, Tanadge, White, Wood
bridge-26.
Mr. CALHOUN offered an amendment, to strike
out in the 18th section the clause giving the Secretary
of the Treasury power to sell the one-thrd To te sub
scrbed by the United States in case is not other
wise taken and 10 insert PROVISION that the stock
OF the United States held by the Bank may be sold al
any time by the previous assent Of Congress, on pay
ing the par value IN specie at the Bank.
He understood the Chairman of the Committee,
that this made to conform nearly possible, 10
the Bank charter of 1916 This was not contained
in that charter but his object 10 dsest the Secre
tary of the Treasury Of this discretion. He could
not the reason why should be objected to, and
would say no more until some reason was offered.
Mr.. CLAY did not mean iA saying that the general
charter like the charter of 1916, to say II
should be precisely the same-by no means. This
amendment deprived the government of an immense
advantage. II the stock rose it ought to be In the
power OF the Government to sell it.
he hoped the stock would be sent abroad. He
thought 1t would command much higher prices than
in the United States lie had Just heard from friend
who had just returned from Europe that money had
accumulated and loans were making at three or four
per cent the continent Ii ought 10 be sent abroad
for another reason; IT would add so much to the ex
lstng specie means OF the country Ii was proposed
To withdraw about six and half millions oil dollars
from dormant condition, or from the active funds in
business, Ill the Bank organized. lie thought II
ought to be Org anzed ut the FIST nstamen but not 10
90 into active operation I'LL the second This alterna
tive which the Government possessed, of either buying
OF selling the stock, was valuable; OF which II ought
not TO be deprived
Mr. CALHOUN thought there not the slight
est probability OF this stock selling bove SIX per cent
He did think that there was AN argument tor sell
ing the stock abroad. The stoek-maIket would not
be good long. Our true policy was no: TO send one
dollar To Europe even If we could draw the specie Tor
II would return back 10 Europe, creating reaction
The Senator had said by this, we should put the
Bank into operation sooner he thought that there
at the basis OF this fear that the stock would mo-,
be taken II had Produced all the enormous huctua-
TONS which had been connected with he Bank Tor
years. great point 10 be observed was, IN launch
ing this into operation all at once, which could not be
done without disturbing the whole moneyed system OF
the country, and enuabge.ing lis existence. This
was one OF the great causes which involved the Bank
IN 1916, ~, and Is. he then opposed II on the
same ground, but was overrued and the result of It
the forced operation OF the Bank and the result
of that the tremendous reaction which nearly pros
tratcd the Bank Ii this Amendment prevailed he
would offer another, that the stock should be sold
gradually.
Mr.. CLAY said il was a simple proposton--shall
,he VI part tHc power Oh
ing subscribing Tor the stockl The Senator went
on the assumption that II would not be above par II
81 the Government would be the subscriber The
| money market of Continental Europe easier
than at present. There was no Government IN Eu-
rope where stock would nmand a higher price than
the stocks of the United States winch mad paid of all
their debts. he question whether We can contract
loan Tor less than SIX per cent. was demon raed by
the fact that Treasury Notes selling at five and
two fiths per cent The alternative oug hit to- be re
4 n.,r m.
stock, according To the state Of the money market he
hoped The amendment would not be adopted. Ii was
u most valuable privilege to allow the Government &c
buy the stock abroad.
American credit abroad He wished far his ae-
tion went, TO make this Bank safe to the pubic
they could. The widest OF all topics was To brIng
specie from abroad 1t would return again he dan
gerous point was III launching tins machine at pre-
sent II this Bank was To consist entirely OF bullion
IN less than three years most tremendous r, fux
would take place. lie whole affair was TO lie Bank
Of borrowers mol of lenders ana like all OF that KIND
II would explode OF suspend IN short tine, without
the utmost caution.
Amer slight modification by Mr. KING. the vote
on the amendment was taken, and negaiyed MS fol-
| lows
| lEAS-Me,sls. Allen Benton, Buchanan Cal.
houn, Clay, of Alabama, Cuthbert, Fulton, King
| Linn, Mcnob,rls, Mouton Nicholson Pierce, Smpu
OF Con, Sturgeon, Japan, Walker, Williams
Woodbury., Wright, Young-2l.
| NAYS Messrs. Archer, Bates, Bayard, Berren
Clay, OF Ky, Clayton, Dixon, Evans Graham, Hen
derson, Huntington, Kerr Mangum, Merrck Miller
| Morehead, Porter, Prcntss, Preston, RNcs, sim
mons, smith, OF Ind Southland, lallmadge, White
1 w oodbudge-26
Mr. CALHOUN offered an amendment, in tn,
l4th fundamental article, strike all between til,
Inc Io4, and the word IT" In line 1863 and insert
provision that half yearly dividends be made OF III,
nett profit OF the Bank shall appear ad, isabe no
/ tI half
allowing Tor the expenditures OF the Bank, providing
that il does not exceed - pef cent per tn,
capital OF the Bank, and sum not exceeding -
dollars for the erection OF buildings and all excess tt