The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-07-24

| hand to Banks when it could be done with safety,
and might by little loan rolieve them from much dis
tress. The word corporation was very extensive; it
included cities and manufacturing corporations which
were intended to be aided by this Bank. The Sena-
tor from Mississippi had said great Losses were made
by corporations and therefore they must make restrc-
ton prohibiting corporations from taking stock at all
| They might as well say, because they had met with
losses from individuals they would not loan TO them.
| How did they occur2 When the old Bank sunk from
a National to State institution 1t had great fusd
| on hand which it sought out the means of employing.
Hence, loans selected at four or ye per cent
That was the cause 1t would be an unwise restric-
lon to say that il should not lend to any corporation.
| Mr. WALKER said the enormous loans to Bidde
Were when the Bank was IN its high career as Bank
of the United States.
Mr.. CLAY: But in contemplation of lis becoming
| Mr. WALKER said the Senator from Kentucky
had said they were to leave all discussion to the drec
tors of the Bank and thus neglect all the lights OF
experience. This the only time TO impose on the
Bank every possible restriction fthey had been ln-
posed on the present Bank, it would not now have
been mass of insolvency. We were told 1t was I'M
portant to permit this institution TO make loans to
Banks, to prevent their failure. he said II Bank
was in such condition that could not borrow funds
elsewhere prevent their failure or suspension that
was the very reason for this amendment. That was
the object of the loans of the old Bank to the Bank
of Mississippi and they had resulted IN losses OF over
million of dollars II entirely wrong to loan
L
cites-the city of Washington might want loans, but
| although he a friend to Washington, he thought
experience had demonstrated it unsafe to make loans
to her. @,a #
The vote was then taken, and the amendment re-
jected follows: #.# -.. t.e'. tE' ....
YEAS-Messrs. Allen, Benton, Buchanan, Calhoun,
Clay, Of Alabama, Cuthbert, Fulton, King, Linn,
McRoberts, Nicholson Pierce, SEWER Smith, Of
Conn, Sturgeon, Tappan, Walker, Woodbury.,
Wright, Young-20
| NAYS-Messrs. Archer, Barrow Bates Bayard,
Berren, Clay, ofKy, Clayton Dixon, Evans, Graham
Henderson, Huntington, Kerr, Merrick, Miller, More
head, Porter, Prentiss, Preston, Rives, Simmons,
Smith, of Ia, Southland, Tallmadge, White, Wood
Mr.. CALHOUN offered an amendment, to strike
in the 7h section the clause giving the Secretary
of the Treasury power to sell the onethrd to be SUBJ
scribed by the United States in case it is not other
the United States held by the Bank may be sold at
any me by the previous assent of Congress- on pay
ing the par value in specie at the Bank. aH.
He understood the Chairman of the Committee,
that this was made to conform as nearly as possible, to
the Bank charter of 1916 This was not contained
in that charter but his object to divest the Secre
tary of the Treasury of this discretion. He could
not see the why should be objected to, and
would say no more until some reason was offered.
Mr.. CLAY did not mean in saying that the general
charter was like the charter Of 1916, to say it
should be precisely the same-by no means. This
amendment deprived the government of an immense
advantage. If the stock rose it ought to be in the
power of the Government to sell it. ast
He hoped the stock would be sent abroad He
thought it would command much higher prices than
in the United States He had just heard from friend
who had just returned from Europe that money had
accumulated and loans were making at three or four
per cent the continent fought TO be sent abroad
for another reason; 1t would add so much to the ex-
sting specie means of the country It was proposed
TO withdraw about six and half millions of dollars
from dormant condition, or from the active funds in
business, till the Bank was organized. He thought it
ought to he organized ut the first nstamen but to
90 into active operation till the second This alterna
tive which the Government possessed Of either buying
or selling the stock, was valuable OF which it ought
not to be deprived. ........ ..... u.s.. 4. .g g.
MI. CALHOUN thought there was not the slight
est probability of this stock selling above six per cent
He did not think that there was argument for sell
ing the stock abroad. The stock-market would not
be good long. Our true policy was no: TO send one
dollar to Europe if could draw the specie for
The Senator had said by this, we should put the
Bank into operation sooner. He thought that there
at the basis of this fear that the stock would not
be taken. Il had produced all the enormous fuctua-
tons which had been connected with The Bank for
years. A great point TO be observed was in launch
ing this into operation all at once which could not be
done without disturbing the whole moneyed system of
the country, and endangering its existence. This
was of the great causes which involved the Bank
in 1916, II, and '1S. He then opposed it on the
same ground but overruled and the result Of it
was the forced operation Of the Bank and the result
of that the tremendous reaction which nearly pros
trated the Bank. If this amendment prevailed he
would offer another that the stock should be sold
gradually. nSa<- 81 3@s G
Mr. CLAY said it was a simple proposition shall
the Government retain part with the power Of sell
ing or subscribing for the stock2 The Senator went
on the assumption that il would not be above par if
SO the Government would be the subscriber. The
money market of Continental Europe easier
than at present There was no Government in Eu-
rope where stock would command higher price than
the stocks Of the United States, which had paid of all
their debts. The question whether we can contract
loan for less than six per demonstrated by
the fact that Treasury Notes selling at five and
two ths per cent The alternative ought to be re-
tanned to Government of subscribing selling the
stock according to the state of the money market He
hoped the amendment would not be adopted, 1t was
most valuable privilege to allow the Government to
buy the stock abroad. :S
Mr.. CALHOUN had said not one word about
American credit abroad He wished as far as his
ton went to make this Bank safe to the public
they could. The widest of all topics was TO bring
specie from abroad; it would return again. The dan
gerous point was in launching this machine at pre-
II this Bank consist entirely Of bullion,
in less than three years most tremendous refnx
would take place. The whole affair was TO be Bank
of borrowers not of lenders and like all of that kind
itwould explode or suspend in short time, without
/ the utmost caution
| After slight modification by Mr.. KING, the vote
on the amendment was taken, and negatiyed as fol-
| lows .I,E ..s,,
| YEAS-Messrs Allen, Benton, Buchanan, Cal
houn, Clay, of Alabama, Cuthbert, Fulton, King,
Linn, Mckoberts, Mouton, Nicholson, Pierce Smith,
of Con-, Sturgeon, Tappan, Walker, Williams,
/ Woodbury., Wright, Young-2l.
/ NAYS-Messrs. Archer, Bates, Bayard, Berrien,
Clay, Of KY, Clayton, Dixon, Evans, Graham, Hen
derson, Huntington, Kerr, Mangum, Merrick, Miller,
i Morehead, Porter, Prentiss, Preston, Riyes, Sim
mons, Smith, Of Ind, Southland, Tallmadge, White,
1 Woodbridge--26
Mr.. CALHOUN offered an amendment, in the
line I54 and the word if" in line 1862 and insert
provision that half-yeary dividends be made of the
nett profit Of the Bank, shall appear advisable, moi
exceeding three and half per cent. for any year
allowing Cor the expenditures OF the Bank, providing
that il does not exceed per cent. per annum tn,
i capital of the Bank, and a sum not exceeding ---
dollars for the erection Of buildings; and all excess Il
be paid over TO the Treasurer Of the United States