The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1841-08-26

''9N"e'9i @idnteu by any FORM OF bdfiE, III
the regulating OF The currency and The ex-
changes! Let the history Of the late Uni
ted States Bank aid us 10. answering this
inquiry.
For several years after the establish.
ment Of that institution. Il dealt almost ex-
eluslyely IN local discounts, and during that
period the country was, for the most part,
disappointed IN the consequences anlieipa!-
ed from ITS corporation. A uniform cur
rency was not provided, exchanges were
not regulated, and lutte or nothing was
added to the general circulation; and in
l52O It's embarrassments had become 50
great that the directors petilioned Con-
gress TO repeal that article Of the charter
which made It's notes receivable every
where IN payment OF the public dues. 1t
had, up TO that period, dealt to but very
small extent IN exchanges, either foreign
or domestic ; and as late as 523 lis opera
tons IN that line amounted to little more
than s. ,000, 900 per annum. A very rap
I'd augmentation soon after occurred, and
| 10 1923 It's dealings ia the exchanges
amounted 10 upwards Of 500, 900, 900, in-
GLIDING the sales Of IFS own drafts aud all
these immense transactions were effected
without the employment of extraordinary
means. The currency Of the country be-
came sound, and the negotiations in the
exchanges we're carried on at the lowest
possible rates. The circulation was IN.
creased to more than S32 600, 900, and the
notes Of the Bank were regarded as equal
10 specie al! over the country thus show
ing, almost cOnciuslyeIy, that II was the
capacity to deal 10 exchanges, and not in
local discounts, which furnished these ia
ciltcs and advantages. 1t may be re-
marked, too, that, notwithstanding the i'm
mense Transactions of the Bank III the pur.
chase Of exchange, the losses sustained
were merely nominal; while 10 the line of
discounts the suspended debt was euor.
ucas, an proved most disastrous to the
bank and the country. Its power of local
discount has, IN fact, proved To be fruit
iul source Of favoritisn and corruption,
alike destructive to the public morals and
to the general veal.
The capital invested in banks Of discount
IN the United Ste,es. created by the States.
al this time exceeds $3.50 600 900 and if
the dlscounting Of local paper could have
produced ans beneficial effects, the United
States ought to possess the soundest cur
rency in the world. But the reverse Is
lameniaby the fact.
-. ,.....s..-, J . -
ton oc no objectionable cht,ac,er IL
n.h.cL tar. aif,.IsI1 :, -.
49, ~ 0'"t'y 80,
u'i'ess ny we ION fundamental article oi
~, I'''g . '',','o o','a'
49, = 49, " = ''o ''''o" 's "o'0
Tue direcioTs Of tho ssid corporation shall
dcas.sa ~ C"' 80" Po's"' JIM . aiseoani ana
shsFe. sbslI bsys b,.a .s.e, '.. q, ,O . ~ s
whenever, upon application Of the Legislature Of
sueh State Congress may, by law, require the
slli's Aaa 'he s.ia a'rse'or' nay also es'abltsh
oei,e n anv Tsrr,,ory y, D,.,rt, 10 ,' ~ ~
ted States. and 10 any STATE. with the assen, Of
such State and when esiahlished. the said Office
~. "a 5.,otos " - , = = M, ','oy ~
charter. w,b IT, prssiou. assent IL C,pgrc.s
Prapsded, - respect 10 any State gat-h shall
not al ths first session OF me Legislature thereof
osia Als'' tns pazslge o. 'h.s aet, oy resolution
,on,y sson, ,r 5,..sn, 10 ,se sCl'- ~
such Office or Offices within il. spch assent Of the
Said State shall b thereafter presumed And
p.oelafa' sersftas.sss, ha' whenever y shan DO
oc 80 49,. $50 ,,.,,s1 t.s ..'S
stiaiion 10 establish an office or Offices in any
of the States Thsteycr. and the establshmelt
thereof shall be directed By Law, i shaii be The
a1'l = 'oe ~ g..s'o'' % 's'1o''s' s'en once
II "'ll be seen mat 10y this clause the
directors arc invested wan me tuiies' pow
er 70 establish branch 20 any state which
has welded us assent ana, having once
established suell branch II shall not alter
wares be "'lhara"n except by oIder oil
Congress Sach assent Is 10 be implied
ana . have me iarce ana sanction o. an
actually oppressed assent " provided "a
respect to any State which shall not at NE
trs' session OF the Legislature Thereof held
after tie n.@nun al tins act. nN TISQlUflpQ