Litchfield enquirer., 1841-07-08
MIR. CHATS BANK REPORT.

MR. CHATS BANK REPORT
 The following iS the report of the Select Commit. Ciay of Kentucky, is C6Sirman. ss read by him in The Senate:
 The committee to which was referred 90 much Of she tresidents message as relates to uniform cur iHcrensed acies ~ ,bs coIecs;on apd SsbTrseep; and security of the public revenue, have had the same under consideration, and beg leave to report:
 That after the most attentive and anxious cOnside- ration of the state of the currency and the finances of tant bearings the committee have arrived at the same conclusion with the Secretary of the Treasury that eound and just policy requires the establishment of Bank ot the United States with little delay as prac. ticable.
 The committee have neither time nor inclination to enter into discussion Of the question of the power of Congress. under the Constitution of the United States, to establish National Bank. After all that has been said and written that question during the long period of half century, nothing remains be added that would be likely to shed much light upon it. It ought in the opinion of the committee, to be regard ed as settled question-settled by the appreciation and Judgment of the people, by the authority of the by the solemn adjudication of the Judiciary. If it be not regarded decided question: when in the colli- sions and conflicts among arising out of diversi ty Of opinion and judgment, ls contrOverted matter to he considered as terminated and quieIed?
 Nor do the committee think it necessary to discuss the question of the expediency of establishing such 0 there is less conrariey of opinion than the former question. On both it is the deliberate con- vction of the committee that vast majority of the people of the United States concur; and that they are now looking with anxious soicitude, to the deli herations of Congress, under the confident hope that Bank of the United States will he established at the present extraordinary session of Congress.
 Passing hy, therefore. those two questions as being unnecessary 10 he further argued and assuming what the committee very believe, that National Bank is indspensahy necessary, they will proceed, at once, n.N fha ruIa farm RaNn 1uifh which lt may be expedient to invest such an nstltu tion. And here the committee have no hesitation in saving that, conhdng in the experience of forty years, ofa National Bank. and during the greater part of which it has realized every reasonable hope and ex- pectatoD iR the operations such institution, they came to the conclusion that it would be wisest to dis miss all experiments. and to cling to experience and assume the last charter granted by Congress as the basis of new bank, engrafting upon it such restric tlons guarantees, amendments, and conditions, as have been found necessary by actual experience.
 The Secretary of the Treasury came to a similar conclusion and in his report, and the draught of a the charter granted by Congress in lSl6 On that he has suggested a great many valuable improvements, most of which the committee have incorporated in the dranght of bill which they now report to the Senate. On :hIs draught they wish to offer to the Senate some brief explanations and observations.
 The committee have adopted Washington city, proposed by the Secretary of the Treasury. as the place of location of the principal bank They believe the place of it's location is subordinate question hut there are many advantages from ;he proximity of the Bank to the Government. The distribution of the capital of the Bank among the several commer- cal cities in proportion to their respective and gnitude, is what they naturally desire, and what will doubtless be done. But no guard against the ercse of any undue government or official influence the imputation Of any unworthy transaction, the committee have thought it expedent deprive the parent Bank of all power make any discounts or loans whatever, except loans to Government, author zed by express law. In order insure the hest nan cial abilities of the country the bill provides that the nine members. shall be paid for their services by the corporation. and nl compensation 10 the Directors. in the usual form of bank accommodations, is utterly prohibited.
 Thus the Directors of the Bank at Washington will become Boari of Control, experimenting the bran shes, supplying them with currency and banking ex clsve'y through the agency of their offices of dis
 The capital of the Bank. proposed by the Secreta ", IS retained but power IS reserved to Congress ing the aggregnte amount ultimately fifty millions of dollars, fl it should be found to be necessary.
 To guard against undue expansion of the currency by the operation of the Bank, various restrictions and securities are introduced.
 l. The dividends limited to per cent. per annum: and after accommodating reserve fund of two millions of doa tO cover losses and cOntin- gences the excess beyond that per cent. is to be paid into the public Treasury. And whatever ex. remains the eud of the charter, beyond the mbursement 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 ot the charter the deficiency Is to be made good out of rhe surpluses previously paid into the Treasury The effect of this provision is to make perna and in variable seven per cent. hank stock. assuming that ihe administration of the Bank is conducted with in- teery and ability.
 ?. The debts due 10 the Bank are required not to exceed the of the capital stock actually paid in and seventy.fvc per cent thereon, which is a greater restriction than usual.
 The total amount of debts which the Bank is thorzed to and above ihe deposites is not to exceed twenty-five millions of dollars which is also greater restriction than was placed upon the late Bank of the United States.
 g. The publicity which is required of the general condition of the Bank, and the full and complete ex- posture to committees of Congress and to the Secreta " Of the Treasury, which is amply secured of all the books and transactions of the Bank, including private accounts.
 4. The prohibition of the renewal of any loan thus putting end to all mere accommodation paper r, as far practicable, and con6ning the Bank fair bu slness transactions; and
 5. The Bank is prohibited from making any further discounts or loans. whenever its notes in circulation exceed three times the amount of specie in it's vaults. against mismanaeement of the Bank. several provi- snns have been inserted, which it is hoped may be effectnal.
 1. No paid officer of the Bank is receive loans or accommodation in any form whatever.
 ?. Securities are provided against abusive use of proxy; no proxy can give more than 300 votes; no proxy 10 be good which is of longer standing than 9O days, &c.
 3. prohibition against the corporation sransa citing any other than legitimate banking business; exclu- ding all dealing in stocks, and all commercial opera tions.
 4. reqnsiiion that a majority of the whole num- ber of the board of directors shall he necessary transact the business of the corporation.
 5. Ample power to make the most thorough eXami- into oOAn off fho Rank