Lexington union. (Lexington, Miss.) 1838-18??, 1841-10-02

IWhlCn lis STOCK Is TO be SuscTlDeu lOr anu
held--the persons & bodies, corporate &
polite, by whom its stock may be held
the appointment of its directors, and their
powers and du,ies-itS fundamental arti-
cies, especially that to establish agencies
in any part OF the Union-the corporate
powers and business Of such agences-the
prohibition Of congress to establish any
other corporation with similar powers for
twenty years, with express reservation in
the same clause to modify or create any
bauk for the District of columbia, so that
The aggregate capital shall not exceed five
millions; without enumeratlng other lea-
lures which are equally distinctive and
characteristic, clearly showthat il cannot
be regarded az other than Bank of the
United States, with powers seemingly
more limited than have heretofore been
granted to such an institution. Itoperates
per Sc over the Union, by virtue OF the
.uuaIded and, in my view, assumed authorl-
.rv of congress as a National Legislature,
as distinguished from bank created by
congress for the District of columbia, as
the local Legislature for tho District.
Every United States Bank heretofore
created has had power to deal in bills of
exchange, as well as local discounts.
Both were trading privileges conferred,
AMI both were exercised, by virtue OF the
aforesaid power of Congress, over the
whole Union. The question of power re-
mains unchanged, without reference TO the
extent of privilege granted, II this pro-
posed Corporation is to be regarded as a
local bank Of the District of Columbia,
invested by Congress with general powers
, to operate over the Union, it is obnoxious
, to sill stronger objections. II assumes
! that Congress may inyest local lnstltu.
: ton, with general or national powers
! With the same propriety that it may dc
, this in regard to a bank Of the District oil
! Columbia, it may as 10 n state bank. Yet
. who can indulge tho idea that this Gov
. ernment can rightfuIly, by making State
r Bank its fiscal agent, invest it with the
:. absolute and unqualified powers conferred
! Ibv this bill? When come to look at the
! details of the bill, they do not recommend
a it strongly to my adoption. A brel notice
,cf some Of its provisions will suffice.
d First. 1t may justify substantially
G system of discounts, of the most objection
s Iahla character. 1t is to deal in bills o
e exchange drawn in one State and payable
$ in another, without any restraint. 1h'
J bill of exchange may have an unlimited
, time TO run, and its renewablIlty IS M
-. where guarded against. 1t may, IN Tact
y assume the most objectionable form OF &C
f commodation paper. 1t is not required Il
{ rest on any actual, real or substantial ex
I change basis; drawer in one place be
, lcomes the acCeptor in another; and so, II
= turn, the acceptor may become the drawe
under mutual understanding. 1t may
/ at the same time, indulge in mere loCa
h discounts, under the name OF bills OF ex
+ change. A bill drawn in Philadelphia
e on Camaen New jersey; at New Yorl
. on border town in New Jersey; at Gin
g cinaur, on Newport kentucky, not t.
. multiply other examples, might for an.
s thing in this bill to restrain it, become
d mere matter OF local accommodation. =
o Cities thus relatively situated, would pos
= sess advantages over cities otherwise stu
Q ated, of so decided a character, as mos
o Justly 10 excite dissatisfaction.
: Second. There is no limit prescribe
J to the premium in the purchase of bills
+ exchange, thereby correcting none OF tn
d evils under which the community now la
:, bors, and operating most injuriously uPo
he agricultural States, in which the il
10 recularties 10 the rates of exchange ar
g mos, severely felt. Nor are these tn
v only consequences. A resumption Q
e specie payments by the banks of thos
"a States would be liable TO indefinite pos
/. ponement; for as the operation of the a
;. Igencies Of the interior would chiefly con
n sist in selling exchange, and the purchas
r. could Only be made in specie, or the note
a Of banks paying specie, the State bank
!. would either have to continue with thel
n doors closed or exist at the mercy OF thI
:. national monopoly Of brokerage. Nor cal
=, il he passed over without remark-tha
? whilst the District of Columbia is mad
q the seat the principal bank, its citizen
|, are excluded from all participation in an!
3 benefit it might afford, by positive pro
- bibirIon on the bank from all discountint
y within the District.
r These are some ofthc objections which
. prominently exist against the details o
:, The bill; others might be urged OF muci
10 force; BUTT would be Improbable to dwel
II upon them. Suffice it to add-'hat TINS
:; charter is designed to continue for twenty
70 Years without competitor; that the de
(ecls here alluded to, being founded OF
: tho fundamental law Of the corporation