Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-07-05

specie lmying hanks." This motion was the sig
nal for general onslaught of the whole Banking
system. hlessrs lienton aud Allen took this op-
porinniIy to dcuouuce the non-spccic paying
Banks OF all the States, aud the Fiscal Bank
in advance.
The colleague of MIR. Clay Mr. Morehend made
u very happy rGtor lie pointed out the warn
ings that had hecu given y The Wings when the
wpr was nude on HE IT, :. Bank, aud the DcpOS-
| ties removed and the Pet Bank system adopted -
warnings inlI in themselves and verified TO the We
~ letter. Yet, with all these facts staring them
III the fa'e gentlemen turned now to dcyour their |
own offspring; they Should not speak Of dcprt CT. |
a'cd paper without calling up the ghosts OF ihuse
murdered institutions that shock their CORY t0cks |
al Them. We, on this side of the Senate, (@aid |
| Mr.. NJ. chn AFFIRM "Lou cdnst not say zoe lid it,"
The House adjourned, to day. between twelve
| and one clock, in order to afford time for the !
committee Of Ways and means to prepare mare
bills. No business was, therefore, tranSaclcd-
Several resolutions offered aud which lie
over. Two of these relate TO general Bankrupt
law.
Correspondence Of The ILLUS.
| WASHINGTON, June "a. 1911.
| The galleries OF the Senate Ch mb,r were crow
died. this morning with lair ladies' aud their attend
ant sqnres, all eager to listen to Mr. Cay's speech
upon the bank bill This taken up the
regular hour, which found Mr.. McRoberIs enga-
ged i'll dis russing the merits Of Mr. Welistcr's cir
cunr on ihe subject of removals from office, and
admouished him TO break off in the midst of his
speech. The first section only of the bill was
read, and Mr. Clay then rose to explain the views
ot the COMMITTEES upon the whole subject. lie
said he would NOT, at this late day. discuss the
cOnstitltionay Of n bank, nor would lie argue
the question of pxpediency. lie should conine
himself 10 u simple explanation Of the distinctive
features OF the proposed charter. He commented
with the reasons which had iufurlceh ihe Com
mitice III fixing the amo;int Of the capital Of Il
bank at thirty nliIlious. The critcria If the prop
er sum were to lie found in The comparative
mcnnt Of the population, wealth, commerce, aud
territorial extent of the country, aud the amount
OF tue capitals OF foreign banks commercially con-
nec,e;. with us. In 1880 the stock OF the Bank
OF the United States had been fixed nj ten mil
lions, aud this sum hal very generally been con-
sl'lered AS very well proportional TO the extent of
our territory aud resources nj that time. Since
that i'fne our population had twice been doubled.
Ii Was then near S..C00G00. Oar wealth was
more than q'iadruple its then ainouul-and orr
territorial limits were extended in much greater
proportion. The sum OF thirty millions
iaiuly in this view sufficiently small, and the au-
lhoriy given To Congress 10 enlarge it to fifty mil
lions, IT necessary, seemed 10 he requisite. By
the plan 1t subscribing OH the part ofthe Govern
lnelt liz 1wn bonds ut per cent. interest, it was
estimate ihat $500 COO per annum would be
cleared by the Government by the difference OF
interest IN lis favor. IL had heen deemed inexpe-
dient to provide for a subscription to the stock on
the part of States, either IN The shape Oither por
non at the fourth lnstalment or otherwise, aS il
was the wish OF the Committee 10 present the
question of bank or no bank, simply and ma
kedly us possible. 1t WAS not from any doubt on
his own part certainly that the fourth insia I'm nj
was due, for he considered the public faith pedg-
ed 10 lis payment whether it was called debt or
not. AS 10 the location Of the bank, he confessed
he had felt preference for other cities than this
but whenever he had rev0ved The subject in his
4
places he lad thought Of, aud it certainly posses
sed many advantages This selection would pre-
veit the jealousies which would he aroused by To-
eating the lmn! in either Of uur prnc pal cities
and would runbe the Government TO hold more
direct communication with il, which, in time o.
war; might be OF the last importance; while the
inability of the principal bank 10 loan 20 any in
divldual, would obyiate the danger of political
lcOnDexIon which might otherwise have BEEN lear
ed from its vicinity to officers OF Government
members of Congress, &c. The Committee had
left out of the charter any provision for bonus
to he paid 10 the Government, which seemed to
resemble too strongly brhc, aud in lieu thereof
had provided that the profits beyond per cent
ar,s,ng from the business Of the bank should he
paid INFO the Treasury, leaving the bank howev
er, n surplus of two millions 10 guard il against
contingencies. This latter, combined with the per
mission To divide per cent per annun, and tina
upon failure TO realize that amount of profit in M,
the SURPRISES previously paid into the Treasury
would without doub', constitute a sufficient slim
ulous to capitalists 10 come forward eagerly Will
subscriptions 10 The new institution. lie did no
doubt thar as soon AS the Bank should go into up
Grafton, which would lie as SION MS So 600 COZ
were paid in, probably about the first OF next Jan
uary the stock would command from los - Is
or from | 10 10 100 per cent. To allow the bank
TO deal in foreign hills of exchange, seemed 10 b,
Indispensable, aud the Secretary of the / reasur,
was perfectly reconcrd To such nn alteration %
his plan. Ii was true that some bankers oh,ecle,
10 such n provision, bun perhaps they feared lhc
own profits might he diminished hy tbs cotnpeti-
ton OF so powerful II corporation. There wil
no fear that ihc bank would keep ihf rate at tX
change TOO high. Their own interest wond al
ways teach Ieiu 10 avoid n course which woul'
lead 10 The expectation of spece aud it WAS ne
cesSnry bo h 10 enable The Government 10 reuil
money for The diplomatic of naval service, and Il
ailprl facilities To orr merchants in their iransac
: tons with foreign nations, that Tins mower shout
be conferred. by making cmbeZHGinrnt on ia
part ut officers OF the hank tclnnous offence
: and by giving to the Courts Of this District Tia
power to rcslrnin the directors. 10y injunction, iron
. lransgreSsns beyond The proper aud legal bound
appointed 10y The charter, he hoped 10 aver, en
. tIrely those calamtcs which had lnilen so heavi
y upon Tho stockholders of The Pennsyvani
Bank Tho provision that The bills of any brnnc
should he receivable by all Of them in payment q
3 dues. had been found SO necessary TOR tie conve
nienco OF the State banks in their dealings witt
the old Bank of tho United States, that it ha
been in the charter which passed Congress In 1855
s II was necessary TO the smaller banks fror
= the Inconvenience OF constantly remitting th
8 specie in making up their balances. They coul
), not go beyond this, and provide that the bills
8 all the branches should be redeemed at each
Q them, for that would put it in the power ,
( an enemy TO compel the suspension OF an
= branch by collecting great number of the bill
!. OF other branches and making run upon it,
a respect to tho name Of the bank, il must be COT
o fessed that the name of the Bank Of the Unite
I States was tainted, and the name OF The Else