The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-06-22

there are many advantages from the proximity Of the
Bank TO the Government. The distribution OF The
capital Of the Bank among the several commercial
cities in proportion 70 their respective wants and mao
nitude is what they naturally desire and what Vii
doubtless be done But 10 guard against the exercise
Of any undue Government OF official influence or the
muutaiion Of any unworthy transactions the commit
have thought Il expedien 10 deprive the parent
Bank Of all power 70 make any discounts or loans
whatever, except loans 10 Government, authorized by
express law.
In order to the command Of the best financial
abilities OF the country the bill provides tina the d.
rectors OF the parent board which is TO consist OF nine
members, shall be paid for their services BY the colo-
ration and all compensation 10 the dreclors in the
usual form Of bank accommodations, is utterly pro-
hbted
Thus the directors Of the Bank al Washington
val become board of control, experimenting the
branches, supplying them with currency, and bank
ing exclusively through the agency Of their offices Of
discount add deposite
The capital OF the bank proposed by the Secretary
Is retained, but power Is reserved TO Congress
augment il by the addition of twenty millions making
the aggregate amount ultimately fifty millions Of dol
lars, II that should be found To be Necessary
To guard against undue expansion Of the currency
by the operations of the Bank various restrictions and
securities introduced
l. The dividends limited to seven per cent. per
annum; and after accommodating reserve fund of Two
millions Of dollars losses and contingencies
the beyond that per cent. is 10 be paid
Il
mains at the end of the charter, beyond the reimburse
ment 10 The stockholders OF the capital stock also
be paid into the Treasury. If the dividends fall be
low per cent during any year Of the charter the
deficiency 10 be made good out of the srTpluses pre-
yiousy paid into the Treasury. The effect of this
provision is to make perna and nyariable seven
PER cent. bank stock assuming that the administration
OF the Bank is conducted with integrity and ability.
2. he debts due to the Bank required not 10
exceed the ofhe capital stock actually paid in,
n1Hz fl. five paTpa Nyl ntqT
restriction than usual.
The total amount ofdebts which the Bank is autho
rzed 10 contract and above the depostes not 10
exceed twenty five millions of dollars, which is also
greater restriction than was placed upon the late Bank
of the United States
3. The publicity which is required Of the general
condition of the Bank; andthe full and complete expo
committees of Congress and to the Secretary
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, as
far practicable and confnng the Bank TO fair bus
ness Transactions; and
5. The Bank is prohibited from making any further
discounts or loans, whenever lis notes in circulation
exceed three times the amount of specie in its vaults.
To protect the community and the stockholders
against Encouragement of the Bank, several prov
have been inserted, which it is hoped may be eff
fectual,
No paid officer Of the Bank is to receive loans
accommodations IN any form Whatever
:. Securities provided against abusive use OF
proxies such as, that officer of the Bank be
proxy no proxy can give more than 800 votes; no
proxy to be good which is of longer standing than 80
days, sc.
3 A prohibition against the corporation transact
ing any other than legitimate banking business
Guiding all dealing in stocks and all commercial opera
tons
A. A requiston that majority of the whole num-
Der OF the board of directors shall be necessary 10
~ OF
5. Ample power to make the most thorough eAaml-
nation into the condition and proceedings of the Ban
down to the accounts Of individuals, by totally
ing from the Secretary OF the Treasury and commit
tees Of Congress the veil of secrecy; and
t. By denosncng and furnishing felony the
crime of embezzlement of the funds of the Bank
when perperaed by any of its officers agents,
wants.
Conculrng entirely in the sentiment expressed by
the Secretary Of the Treasury that many wise and pa
trotic statesmen, whose opinions entitled to
sderaton and respect, have questioned the power
Congress 10 establish National Bank and that ii
desirable far possible, to obyate objections and
reconcile opinion the Committee have attentyely and
earnestly examined the provision incorporated in the
draft of the bill of the Secretary, in regard the
branching power of the Bank; and they would have
been happy if they could have reconciled it to their
sense of duty to adopt it, But, after the fullest
sderaon, they have been unabie to arrive al that
suit ~
Ii was not without some Eesi,ation that the Com
trict of Columbia. This they did, because they be-
lieved that the utility of the Bank did much de-
pend upon the place of lis location upon the capital
faculties, and powers which should be given TO H.
But TO isolate il in this District without giving any
other branching power than such as it might derive
from the consent OF particular States would be
District Bank devoid Of effective ma
tional character. Such Bank would tie Bank only
of the District of Columbia and its offices of discount
and dePosile would be nothing than Banks ofthe
States, which might allow them to be planted within
their respective limits. For all national purposes
Congress might well recharter of the existing
District banks enlarge its capital and give it authority
establish Offices Of discount and deposite in any
State that wouli permit it to be done.
The Committee believe that the capital of bank
constituted would be taken; and that ii taken,
the institution would be wholly unable to accomplish
the great AMI sauary purposes for which il is desired
and should be designed.
But the question of establishing Bank thus to be
reslnct.d and circumscrbed involves higher and great
considerations than those OF mere expediency The
General Government has has not the power 10 es-
tablish National Bank. Ii it has the power it de-
rves 1t from the existing grants in the Constitution OF
the United States. The Committee believe it has the
power aud ought TO exercise It, But after contest,
during the last ten or twelve years respect the
Constltu tional power of Congress, which has been
marked by much animation and bitterness, for
bearance 10 exercise the power, would be virtual
render OF the poR er. Ii a Bank TO be created
whose operations within the limits of the States were
dependent not upon the will of Congress, but upon
the will of each STATE separately announced the crea
ton of such Bank would add another Ia The list OF
disastrous experiments, and would be taniamoun, Ia
a REIMBURSEMENT of the national power, and 1t could
never lie resumed
The power of the Federal Government is ONLY to be
lohnd IN Tue grants OF The Constitution Ii they
inadequate to the iulment OF the great purposes ot
ITS establishment, they can only be increased in the
mode OF amendment which the instru ment itself has
prescribed, They cannot BE- augmented by the grants
or consent OF any state or States short the number
Of two thirds whose concurrence is necessary to give