Vermont telegraph. [volume] (Brandon [Vt.]) 1828-1843, 1841-08-25
August 20, ls4i.

Enlistment, by TINS Srovernnie'''' " :
esl ~ ~ discount, in the ordinary accepts
D'. of that term, was necessary means,
'D. "oe demanded by propriety, to execute
ne s powers. What can the local dis
w. s",s Of the bank have to do with the
e OIIsc,inr, safe.keeping. and discussing Of
\. revenue? So far as the mere dis
y uniting of paper is concerned, it is quite
~maleIial 10 this question. whether the
,;..ouul is Obtained as State Blnk or as
U. s. Bank.
Thew are both equally local-both be-
.;,n;nS and both ending in a local accom-
'odatiVn. What influence have local
G'souuts. oranted by any form Of banks,
tbe regulating of the currency and the
'r,hauges? Let the history of the late
f1aited States Bank aid US in answering
bis inquiry.
nsot Of that institution, it dealt almost
s,elusiyeIv ia Ioca! discounts, and during
Iha prriod, the country was. for the most
Dar disappointed in the consequences an
triualed from its incorporation. A uni
brp currency was not provided, exchanges
we're no. regulated. and little or nothing
was added 10 the general circulation; and
n 1920 its embarrassnenis had become
q great, that The directors petilioned Con-
gress 10 repeal that article of the charter
which made its notes receivable every
where, in payment of public dues.
It had up 10 that period, dealt but 10 a
verv small extent in exchanges, either
Otign or domestic; and as late as 1923,
rs operations in that line amounted TO a
lille more than 81, 100000 per annum
very rapid augmentation soon after &C.
CURED, and in 1888, its dealings in the
,1changes amounted TO upwards Of $780,.
100000, including the sales Of its own
traits; and all these immense transactions
we're effected without the employment oil
Frraordinary means. The currency oil
De country became sound, and the nego-
aons in the exchanges were carrIed on
b;the lowest possible rates.
The circulation was increased to more
han S22.OOO0O0, and the notes Of the
bank were regarded as equal to specie all
pver the country; thus showing almost
Fonclusively, that il was their capacity tc
e ! in exchanges, and not 10 local dis
EOunts, which furnished these facilitie:
pnd I'D 'antages. l, may be remembered
co. that Notwithstanding the immens,
ansaclions Of the bank, in The purchas
Of exchange, the losses sustained wef
nyreIy noasinal; while in the time o
discounts, the suspended debt was error
nous, AMI found most disastrous TO III,
bank aal couulrv. Its power Of loca
Iscoaut has, IL fact, proved 10 be fruit
ii source OF favoritism and corruption
like destructive to the public morals ant
% The general veal.
The icapial invested in banks OF dis
Fount in the United States, created by tn
S.,rs, al this time exceeds $3.50, 900; an
y the dscou hg Of local paper coul
have pro !uced any beneficial effects, tn
Uai,ed Ssa,es ought to possess the SOUND
est currency il. the world, but The revers
is lamentab' y the fact.
Is the measure now under considers
hon, Of the Objectionable character
which | have alluded! II is clearly S
unless by the l6,h fundamental article
The ! l,h section il is made otherwise
The article is in the following words:
1.-The directors Of the said corporate,
shall establish one competent Office
discount aud deposit in any State in WIFI
Two thousand shares shall have been su
scribed, or my be held, whenever, up
application OF the Legislature of So,
Sate, Congress may, by law. require d
same. And the said directors may al
establish one or more competent offices
discount mud deposit in any Territory
District Of the United States, and in ar
Sale, with the assent Of such State; al
when established, the said eff e or offic
shall OF only Withdrawn or removed
The said directors, prior TO the expirat
Of this charter, with The previous asse
Of Congress:
Provided, Ia respect to any State VIII
shall no. at the first session Of the Leg
laturc thereof: held after the passage
this act, by resolution or other usual
gisa,ive pro 'eeding, Internationally
sent or dissent TO the establishment of su
office or Offices within it, such assent
The said State shall be thereafter presu
ed; ard proyid nevertheless, That VII,
ever it shall become necessary and prof.
Tor carrying into execution any of
powers eranied by the Constitution,
establish an Office or offices in any OF
States whatever. and the es;ablishm
thereof shall be directed by law, it sh
be the duty Of the said directors to est
Ish such Office or offices accordingly
1t will be seen that by this clause
directors are invested with the fullest pc
e. 10 establish branch in any State VIII
has yielded its assent; and having Oh
established such branch, il shall not aft
wards be Withdrawn, except by Older