Bloomington herald. [volume] (Bloomington, I. T. [Iowa]) 1840-1849, 1841-09-24

asn. should therefore sanction it. is TO abrsgase
.hs noust altogether, and to render its InseFuo"
= ne Consiitntion work Of absolute SUPERB
roo = alton. The duty IS TO guard the fondamen-
al viii of the people themselves from t!n !nls
: ,se admit unintentional change Q! lnIlac-
, rsus hy majority Of Congress. And IN mar
lioI,t alone, do Iregard the constitutional ou.y
which now most reluctantly discharge.
IL this bill, now presented Tor my approve.
or disapproval, such bill as l nave a'feauy
declared could not receive my sanction. lsN
such bill as calls for the exercise OF me nes
tive mower under the Constitution Does II
violate the Constitution by creating national
hank. 10 operate per Sc over the Union! us
title. in the first place, describes its general
character. 1t .sAn act to provide tor me oe'.
ter collection, safe-keeping, and disbursement
of the pubic revenue, by means OF a corporaao"'
10 be STYLED the Fiscal Corporation OF the On'-
ted States.'' In style, then, it IS plainly ia,
,ional in character. It's powers, functions ahu
dnties are these which, pertain to the colec,mg'
keeDing and dis5ursing the public revenue; me
means by which these are to be exefted -
cornorat;on. 10 be styled the Fiscal Corporation
Of lie United States. 1t is corporation crea-
Tod hv the Congress of the United States 10
tho character Of a National Legislature for the
whola Union. to perform the fiscal purposes,
meet the fiscal wants and exigencles, supply
Tho fsenl uses. and exert the fiscal agencies o.
itself Do its provisions contradict us !lue
| They do not. 1t is true, that oy the nrs' se
,ion il provides that it shall be estaolisI'er :"
| the District Of Columbia, but the amount OF rs
| capital-the manner in which It's STOCK IS sao-
scribed for and held-the persons oodles COZ
porate and polite, by whom its Stock may u
held-the appointment OF It's di1ec'ois' a.1
their powers and duties-lts funaahe1.ai al:
cles, especially that to establish asencles ~
any part Of the Union-the corporate Po"o's
and business Of such agencles-'he Pron'oi y:
| of Congress to establish any othef cofPo.e"o"
with similar powers for twenty years, WIN e.
nrsss reservation in The same clause, to modify
=. oraa,, anv hank for the District of Colum-
~. so that the aggregate capital shall not ex-
coed FIVE millions without enumerating other
features which are equally distinctive and cha-
racteristic, clearly show that it cannot be re,
oarded as ether than Bank of the United
] States. with powers seemingly more Limited
than have heretofore been granted to sucn an
institution. 1t operates per Sc over the ohioh'
by virtue of the unaided, and, in my view, as,
sumed authority Of Congress as Naliohai
LEGISLATURE, as distpguishabe from a bank
created by Congress for the District OF Colum-
bia. as the local Legislature of the District.
Every United States Bank heretofore crea-
ted has had power to deal in bills of exchange,
as we'll as 10 local discounts. Both were ira
i dino privileges conferred, and both exercised,
Inv Virtue of the aforesaid power of Congress,
over the whole Union. The question of pow
or 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 Con
gress with general powers to operate over the
Union, it is obnoxious to still stronger ob]ec-
lions. It assumes that Congress may invest
local institution with general, or natlonal
powers. With the same propriety that 1t may
do this in regard to bank in the District OF
! can indulge. that this Government can rightful-
|Iy, by making State Bank its fiscal agent,
investit with the absolute and nnqnafffied pow.
er conferred by this bill When cor. > to
look at the details of the bill, they do not rec
ommend it strongly to my adoption. A bret
notice Of some of its provisions will suffice.
First. 1t may justify substantially system
Of discounts of the most Objectionable charac-
ter 1t is to deal in bills of exchange drawn
in one State and payable in another, without
any restraint. The bill of exchange may have
i
no more guarded against. 1t may, in fact, as
sumo the most objectionable form of accommo-
dation paper. 1t is not required to rest on any
actual, real, or substantial exchange basis; a
drawer in one place becomes the accepter in
another, and so in turn the acceptor may be-
, come the drawer, upon a mutual understand
ing. Ii may, at the same time, indulge mere
local discount under the name Of bills of ex-
ds New elseyy 81 6g os on o Ss%
} town in New Jersey at Cincinnati Oh New
port Kentucky, not TO multiply other exam
Piles, might, for anything in this bill to restrain
1t, become mere matter of local accommoda-
ton. Cities thus relatively situated would
] possess advantages over cities otherwise stu.
ted, of SO decided a character as most Justly
TO excite dissatisfaction.
1 Second There is no limit prescribed to the
premium in the purchase or bills Of exchange,
thereby correcting none of the evils under
which the community now labors, and opera
1 ting most lnjuriously upon the agricultural
States, In which the inequality Of the rates Of
exchange is most severely felt. Nor are these
the only consequences. A resumption Of spe-
Gle payments by the banks of these States,
would be liable 10 indefinite postponement for
as the operation of the agencies of the inter-
est would chiefly consist in settling bills of ex-
change, and the purchase would only be made
IN specie, or in the notes Of banks paying spe-
Gle, the State banks would either have to con-
tinue with their doors closed, or exist at the
mercy OF this nationol monopoly Of brokerage.
Nor CAN'T be passed without remark, that
whilst the District Of Columbia is made the
seat Of the principal bank, its citizens are ex-