The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-06-15
PLAN OF A BANK AND FISCAL AGENT

PLAN OF A BANK AND FISCAL AGE MT
Letter from the Secretary Of the Treasury, transmit
ting TO the Senate in compliance Nth resolution o.
that body, plan Of Bank and Fseai Agent.
TREASURY DEPARTMENT, June IL, lS4i.
To the President Of he United States:
STA: In obedience TO the directions of the Senate
contained in their resolution Of the 7th instant the
Score airy Of the Treasury has prepared, and herewith
submits, plan Of Bank and Fiscal Agent
In the general plan and frame Of said institution he
has endeavored to free il from the constitutional objec-
tons which have been urged against those heretofore
created by Congress- and far practicable, with
out importing its usefulness, to guard it in its details
against the abuses which such institutions are liza
BILE And he now respectfully submits il to the Sen
ate with the hope that in the process Of consideration
and enactment ii may become, what he did not pre-
PROMISE but which he earnestly desires to see
in the possession of the nation, Bank and Fiscal
Agent, free from constitutional objections, and adapt
ed to the wants of the country and convenience Of the
Government
1t is proposed to incorporate Bank in the District
Of Columbia, by the of the Fiscal Bank of the
United States, having capital of thirty millions of
dollars with power to establish branches Offices of
discount and deposit in the several States with the
sent Of the Staies that the Government subscribe
lh part Of the capital and the supposiiion that it
is the purpose Of Congress hereafter to direct that the
fourth nstament appropriated by the deposit act Of
June 3d. 1885, shall be pail into the treasures Of the
several States it is also proposed that subscription to
that amount be made in the Of the United States
for the Of the States respectively the stock to lie
assigned to, and become the property Of such States
shall accept the same in the and in the pro-
PORTIONS and subject all the conditions provided and
imposed by that act.
And for the amount Of the six millions to be sub
scrbed by the United States their account,
and also for the amount to be subscribed for the of
the several States il is proposed that stock be crea-
ted, bearing interest Of five per cent per annum,
deemable at the pleasure Of the Government at any
time after fifteen years.
i In case Congress should not fit TO make such
provision as is proposed for paying to the States the
fourth insalment under the deposite act, it may be
| well worth while to consider whether the States
might no. be permitted TO take the stock of the Bank
according to their respective amount Of population, to
the extent of ten millions in ALL issuing therefor stock
of their own bearing such interest, and rembursabe
at such periods, might be prescribed the dividends
the shares thus held by the States respectively to
be applied in the first place, to the payment ofthe
interest their stocks; with further provision, il
thought necessary that, in the proceeds of the
public lands should be assigned to the States, those
proceeds should be applied 10 the reimbursement Of
the principal of their debts or stocks, created
sued for the purpose aforesaid.
In the opinion of the Secretary it is desirable that
- c,
one Of the foregoing modes, other mode in the
new institution but if Congress should think other
wise, then it is recommended that the Government of
the Unted States subscribe for ten millions Of stock
leaving twenty to be subscribed by individuals.
It's proposed that the affairs ofthc Bank be manag-
ed by directors, two of them to be appointed by
the President by and with the advice and consent Of
the Senate and Eve to be elected by the stockhoders
at their annual meeting A president to be chosen
by the directors, out Of their own body.
That the branches be managed by not more than
less than five directors; two Of them to be
appointed by the States in which the branches may be
situated if such State be s,ockhoder and the rest to
be appointed by the directors ofthe Bank.
1t is proposed that The Bank be the fiscal agent Of
the Government; that the public moneys be deposited
in ii and, when there that they be deemed and TAX
en- to be in the Treasury Of the United States;
and that the depostes be not removed except by law
and that the Of the said Bank be receivable in
payment of public dues, and that payments made by
the Treasurer Of the United States may be by checks
on said Bank.
That the said Bank receive the funds ofthe United
States; that it transmit them from one part fthe
Union to another and distribute them for the pay
ment of public creditors and perform the duty Of pen
sion agent, free Of charge.
The ordinary powers and privileges of banking in
situations being conferred upon it, and the ordinary
liabilities and duties imposed in order to prevent
banking, excessive issues fluctuations in the price Of
stock and consequent specuations therein and to
the bl-hoders and other creditors of the Bank
from danger of loss, it is proposed
To limit the dividends to six per cent per annum
but il they fall short in any year, the deficiency,
with interest thereon TO be afterwards made good and
when surplus accumulates exceeding two millions,
the be passed to the credit Of the Treasurer
of the United States.
That the amount Of debts which il may at any time
shall not exceed twenty millions over and above
its deposites That the debts any time due to the
Banks shall not ,eed the Of its capital and
seventy-fve per cent thereon; and that, when the
amount of its bills in circulation shall exceed three
times the amount of specie in its vaults, loan
shall be made.
That it shall not deal in any thing except coin, bull
lion, promissory notes, and inland bills Of exchange.
That il sh MI take no mors than six per cent upon
loans.
That it shall discount no promissory notes. and pur-
chase no bill Of exchange which has more than one
hundred ond eighty days to rum make any loan for