, 1841-07-03

ReSolved, That said committee be also In
structed to inquire into the expediency o.
applying prospectively the bankrupt power
Of this Government TO the State banks.
The resolution was agreed 10.
PLAN OF A FISCAL BANK OF THE
UNITED STATES.
The CHAIR then submitted the follow
ing communication from the Secretary o.
the Treasury:
TREASURY DEPARTMENT:
June ~, l84I.
To the President Of the Senate Of the
United STATES:
SIR: In obedience TO the directions of the
Senate, cantained in their resolution Of the
9th instant, the Secretary Of the Treasury
has prepared, and herewith submits, a plan
Of a Bank and Fiscal Agent.
In the general plan and frame Of said in
stitution, he has en~deavofed to free it from
the constitutional objections which have
been urged against those heretofore created
by Congress. and as far as practicable. with
out impairing IFS usefulness, 10 guard it in its
details against the abuses to which such in
stitutions are liable. And he now respect
fully submits it TO the Senate with the hope
that, in the process of consideration and en-
actment, it may become, what he did not
presume TO promise, but which he earnestly
desires to see in the possession Of the nation,
a Bank and Fiscal Agent, free from constitu-
tional objections and adapted to the wants Of
the country and convenience of the Govern
ment.
1t is proposed to incorporate a Bank in the
District of Columbia by the name of the Fis-
cal Bank Of the United States, having a capt.
tai Of thirty million dollars, with power to
establish branches or offices Of discount and
deposite in the several States, with the as.
sent Of the States; that the Government sub
scribe one fifth part Of the capital; and on
the supposition that il is the purpose Of Con-
sreSS hereafter to direct that The fourth III
stalment, appropriated by the deposite act
of June Esd, 1886, shall be paid into the
treasures of the several States, ii is also pro-
posed that subscription to that mount be
made in the name of the United States, for
the use of the States respectively; the stock
to be assigned TO. and become the property
Of. such States as shall accept the same, in
the ann and in the proportions, and sub
ject 10 all the conditions provided and imlos-
ed by that act.
And for the amount Of the six millions 10
be subscribed by the United States on their
account, and also for the amount 10 be
subscribed for the Use Of tine several States,
it is proposed that a stock be created, bear
ing an interest of five per cent. per annum,
redeemable at the pleasure Of the Govern
ment at any time after fifteen years.
In ease Congress should not see fiji TO make
such a provision as is proposed for paying TO
the States the fourth instalment under the
deposiie act, it may be well worth while TO
consider whether the state might not be per.
mitted 10 take the stock Of the Bank accord
ing 10 their respective amount OF population.
to the extent Of ten millions in all, issuing
therefor stock Of their own, bearing such H.
teres,, and reimbursable at such periods, as
might be prescribed; the dividends, on the
shares thus held by the States, respectively,
10 be applied, in the first place, TO the pay
ment of the interest on their stocks; with n
further provision, If thought necessary, that.
in case the proceeds Of the public lands
should he assigned to the States, those pro-
ceeds should be applied to the reimburse
ment ol te prinCipai Oh ltlelT ueDts, oI stochs.
created or issued for the purposes aforesaid.
In the opinion Of the Secretary, it isdesira-
bic that the States should be permitted TO
take an interest in one Of the foregoing
modes, or some other mode, in the new in
stitution; but, if Congress should think other
wise, then it is recommended that the Gov
ernmen, of the United States subscribe for
ten millions of stock, leaving twenty to be
subscribed by individuals.
1t is proposed that the affairs Of the Bank
be managed by seven directors, two of them
to be appointed by the President, by and
with the advice and consent of the Senate,
and five TO be elected, by the stockholders, at
their annual meeting. A President to be
chosen by the directors out of their w
body.
That the branches be managed by not
more than seven, nor less than five directors
two of them to be appointed by the States in
which the branches may be situated, if such
State be a stakeholder, and the rest to be ap-
pointed by the directors of the Bank.
1t is proposed that the Bank be the fiscal
agent Of the Government. That the public
moneys be deposited in it; and when there,