Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-09-25


for the District OF Columbia, as the local
Legislature, of the District. Every Uni
ted States Bank heretofore created has had
power to deal in bills OF exchange, as well
as in local discounts. Both were trading
privileges conferred, and both were exer-
cised, by virtue of the aforesaid power of
Congress, over the whole Union. The
question of power remains unchanged,
without reference to the extent of privilege
granted. If this proposed 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 still stronger Oh
ectons. Ii assumes that Congress may in
vest local institution with general, or ma
tional powers. With the same propriety
that it may do this in regard to a bank oil
the District Of Columbia, it may as to a
State bank. Yet who can indulge the idea
that this Government can rightfully, by
making State bank its fiscal agent, invest
it with the absolute and unqualified powers
conferred by this bill? When ] come to
look at the details of the bill, they do not
recommend it strong y to my adoption. A
brief notice of some of its provisions, will
suffice.
First. 1t may justify substantially sys-
tenn of discounts Of the most Objectionable
character. 1t is to deal in bills of exchange
drawn in one state and payable IN another,
without any restraint. The bill of ex-
change may have an unlimited time to run,
and its renewabity is no where guarded
against. 1t may, in fact, assume the most
form of accommodation pa
per. 1t is not required to rest on any actu.
al, real, or substantial exchange basis; a
drawer in one place becomes the acceptor
in another, and so on in turn the acceptor
may become the drawer, upon mutual I'M
Outstanding. 1t may, at the same time, in
iulge in mere local discount under the name
Of bills of exchange. A bill drawn at Phil
adephia on Camden, New Jersey; at New
York on border town in New Jersey; al
Cincinnati on Newport, Kentucky, not to
multiply other examples, might, for anything
in this bill to restrain it, become amere mat
Ter of local accommodation. Cities thus
situated would possess advanta-
yes over cities otherwise situated, OF so de-
cided a character as most justly to excite
dissatisfaction.
Cd. There is no limit prescribed to the
premium in the purchase of bills of ex-
change; thereby correcting none of the e.
Wis under which the community now labors
and operating most injurously upon the ag-
ricutural States, in which the inequality
in the rates of exchange are most severely
felt. Nor are these the only consequences.
A resumption of specie payments by the
banks Of these States, would be liable to
indefinite postponement; for as the opera
ton of the agencies of the interior would
chiefly consist in selling bills OF exchange,
and the purchases could only be made in
specie, or in notes of banks paying specie,
the State banks would either have to con-
tinue with their doors closed, or exist at the
mercy of this national monopoly Of broker,
age. Nor can it be passed over without
remark, that whilst the District Of Colum-
bia is made the seat OF the principal bank,
its citizens are excluded from all participa-
ton in any benefit it might afford, by pos
tive prohibition OF the bank from all dis
counting within the District.
These are some Of the objections which
prominently exist against the details of the
bill; others might be urged, OF much force,
but it would be Improbable to dwell upon
them: suffice it to add, that this charter is
designed to continue twenty years, without
a competitor; that the defects to which |
have alluded being founded in the fundamen-
tai law of the Corporation, are irrevocable;
and that if the objections be well founded,
it would be overhazardous to pass the bill
into law.
In conclusion, take leave most respect
fully to say, that have felt the most anx-
iCus solcitude to meet the wishes of Con.
gress in the adoption OF Fiscal Agent,
which, avoiding all constitutional objections
should harmonise conflicting opinions. Ac-
tualed by this feeling, | have been ready to
yield much, in a spirit of Cancellation to the
opinions of others; and it is with great
pain that now feel compelled to differ
from Congress second time in the same
session. At the commencement OF this ses-
sion, inclined from choice to deter TO the
legislative will, ! submitted to Congress the
propriety OF. adopting the Fiscal Agent
which, without violating the Constitution,
would separate the public moneys from the
Executive control perform the operations
OF the Treasury, without being burdensome
TO the People, or inconvenient, or expen.
sive TO the Government. 1t is deeply to
be regretted that this Department of the
Government cannot, upon constitutional
and other grounds, concur with the Legis.
latiye Department in this last measure
proposed to attain these desirable objects.
Owing to the brief space between the period