The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1841-09-15

press reservation in the same clause, to
modify or create any bank for The District
of Columbia, so that the aggregate capital
shall not exceed FIVE millions, without e.
other features which are equal
lv distinctive and characteristic, clearly
show that it cannot be regarded as other
than a Bank Of the United States. with
powers seemingly more limited than have
heretofore been granted to such an insli-
tuition. 1t operates per SC over the Union,
by virtue of the unaided, and TO my view.
assumed authority Of Congress as Ma.
tional Legislature, as the local Legislature
cf the District. Every U. States Bank
heretofore created. has had power to deal
in bills of exchange as we'll as local dis.
counts. Both were trading privileges con-
ferred, apd both were exercised, by viz
tue Of the aforesaid power of Congress.
over the whole Unisn. The question of
power remains unchanged, without refer.
ence to the extent F privilege granted. -
If this proposed Corpnratio is to be re-.
garded asa local bank Of the District OF
columbia, exist by Congress, with gener-
al power to operate over the Union. it is
obnoxious to still stronger objections. II
assumes tia, cahgress may invest local
institution with general or local powers.
With the same propriety that it may DO
this with regard to hank of the District
Of Columbia, it may to State bank. Yet
who can indulge the idea that this Gov
ernment can rightf"lIy, by making State
bank its fsca agent, invest it with the ab.
solu,e and unqualified powers conferred
by this bill! Whend come to look at the
details of:this bill, they do not recomuepd
it strongly to my adoption. A brie1 no
tice of some Of its provisions will suffice.
First. 1t may yjustify substantially sys.
tenn Of discounts of The most ohjectiona-
bic character. |, is tn deal in bills of ex-
change drawn in one State and payable
in an"ther. without any restraint. The
bill of exchange NAV have an unlimited
time To run, and its renewabiIity is no
where guarded against. 1t may, in fact,
assume the most objectionable form of ac.
commoda,ion paper. 1t is not required
to rest on any actual, real or substantial
exchange basis; drawer in one place
becomes the acceptor in another, and SO,
in turn, the acceptT may become the
drawer, upon mutual understanding
1t may, at the same time, indulge 10 mere
local discounts nnder rhe name of tho bills
Of exchange. A bill drawn at Philadel-
phia on Camden, New Jersey; al New
York on border town in New Jersey: at
Cincinnati on Newport, in Kentucky; NOT
to multiply other examples, might, for
anything in this bill to restrain il, become
q mere matter Of local accommodation
Cities thus relatively situated would pos.
sess advantages over cities otherwise sltu-
ated, Of so decided a character as most
Justly to excite dissatisfaction.
There is mo limit prescribed TO the
premium in the purchase Of bills OF ex-
change; thereby correcting none Of the
evils under which the community now
labors, and operating most inwriously
upon the agricultural States. in which the
in The rates Of exchange are
most severely felt. Nor are these the
only consequences. A resumption of
specie payments by the banks of those
States would be. liable to indefinite post.
ponement; fur, as The operations of the
agencies in the interior would chiefly CON
sst in selling bills of exchange, and the
purchases could only be made in specie,]
or the notes of banks paying specie, the
State banks would either have to to'conlinues|
with their doors closed. or exist at the
mercy of this national monopoly Of bro.
kerage. Nor can it be passed over with7|
nut remark, that whilst the District of
Columbia is made the seat Of the princi-
pal bank, its citizens are excluded from
all participation in any benefit it might
afford by "a positive prohibition on the
bank from all discouniing within the Dis.
trict.
These are some of The objections which
prominently exist against the details .f
the bill; others nigh, 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 for
twenty years, without competitor; that
The defects to which have alluded, being
founded on the fundamental law of the
are irrevocabIe; and that if
The objections he well.founded, it would
be over hazardous to pass the bill into u
law.
Inccnclusion, l take leave most respect
, 4 T..