The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-06-29

zed by express law. In order to ensure the
command Of the best financial abilities of the
country, the bill provides that the Directors of
the Parent Board, which is to consis. of nine
members, shall he paid for their services by
the Corporation. and all compensation to the
Directors, lin the usual form of bank accommo.
dations, is utterly prohibited.
Thus, the Directors of the Bank at Washing
ton will become Board of Control superin-
tending the branches. supplying them with a
currency, and banking exclusively through the
agency of their offices of discount and deposit.
The capital OF the Bank, proposed by the
Secretary, is retained but power is reser-
we'd 10 Congress TO augment it by the addition
oil twenty millions, making the aggregate a
noun; ultimately fifty millions of dollars, ifthat
shosld be found to be necessary.
10 guard against undue expansion of the
currency by the operation Of the Bank, various
restrictions and securities are introduced.
l. The dividends are limited to seven per
cent. pc. annum and after accommodating
reserved fund Of Two millions of dollars, to
cover losses and contingencies, the excess be.
You'd that seven per cent. is 10 be paid into the
public Treasury. And, whatever excess re-
mains at the end of the charter beyond the re-
endorsement 10 the stockholders of the capital
stock is also to be paid into the Treasury. If
the dividends fall below seven per cent during
any year of the charter, the deficiency is to be
made good out oflhe SURPRISES previously paid
into the Treasury. The effect of this provision
is 10 make permanent and inva.iabIe seven
per cent. bank stock, assuming that the ad.
minstration of the Bank is conducted with
integrity and ability.
2. The debts due to the Bank are required
not 10 exceed the amount of the capital stock
actually paid in, and 10 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 twenty-five millions
of dollars. which is also greater restriction
than was placed upon the late Banklof the
United States.
3. 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 treasury, which is
amply secured, of all the books and transac.
tons of the Bank, iucltding private accounts.
A. The prohibition of the renewal of any
loan; thus putting ali end to all mere accomo-
dation paper, as far us practicable and confin-
ing the Bank to fair business transactions.
3. The Bank is prohibited from making
any farther discounts or loans whenever its
notes in ejaculation exceed three times the "a
mount Of specie in the vault.
To protect the community and the stock
holders against mIsmaEagement of the Bark
several provisions have been inserted, which it
is hoped may be eifeclual.
1. No paid officer of the Bank is 10 receive
loans or accommodations in any form what
ever.
2. Securities are provided against abusive
use of proxies, such as that no officer of the
Bank can be aProxy who can give more than
300 votes; no proxy TO be good which is Of
longer standing than ninety days, &c.
3. prohibition against the Corporation's
iransacting any other than legitimate banking
business; excluding all dealing in stocks, ana
all commercial operations.
A. requisition that majority of the whole
number of the Board of Directors shall be me-
cessary 10 TRANSACT the business of the Corpo.
ration.
6. Ample power to make the most thorough
examination into the condition and proceed.
ings of the Bank, down to the accounts of in.
diriduals, BY totally removing from the Secte-
tary Of the Tr easury and committees Of Con.
gress the veil of secresy.
And By denouncing and furnishing as felo
ny the crime Of embezzlement OF the funds Of
the Bank when pcrpetratcd by any Of lis Of
! fcers, agents, or servants.
Conculring entirely in the sentiment ex'
pressed by the Secretary of the Treasury, that
many wise and patriotic statesmen, whose
opinions are entitled 10 consideration and re-
spect, have questioned the power Of Congress
10 establish a National Bank and that 1t IS
desirable, as far as possible, TO obviato objec.
tiDns and reconcile opinions, the committee
have attentively and earnestly examined the
provision, incorporated 10 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 coulI have reconcied 1t TO their
sense Of duty to adopt it. But after the fullest
consideration, they have been unable TO arrive
at that result.
It was not without some hesitation that the
committee agreed to the location of the bank IN
the District of Columbia. This they did be-
cause they believed that the utility of the Bank
did not so much depend upon the place of Its
location as upon the capital, faculties, and
powers which should be given 10 1t. But 10
isolate it in this District, without giving 1t any
other branching power than such as 1t might
derive from the consent of Particular States
would he TO create an enormous District Bank,
devoid of effectua national character. Such
n bank would be bank only OF the District oil
Columbia, and its officers ofdiscount and de-
nosite would be nothing more than banks OF the
States which might allow them TO be planted
within their respective limits. For all nation
al purposes Congress might as well recharter
one of the existing District banks, enlarge ITS
capital, ard give it authority 10 establish ounces
] of discount and deposite in any otate lhal Woulo