Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1841-06-29
PLAN OF A FISCAL BANK OF
THE UNITED STATES.
TREASURY DEPARTMENT,
June -. 1871.
June -, 1871

the senate, COHtdlllcu III thClt ISS"'"'''''
Of the 7th inst, the Secretary of tho Trea-
surv has prepared, and herewith submits,
q paa of Bank and Fiscal Agent
In the general plan and frame OF sand
Institution lie has endeovorcd to FREQ II
from the constitutional objections which
have been urged against those heretofore
created BY Congress, and as far as Prac-
ticablc, without imporng its usefulness
to guard in its details against the abuses
to which such Institutions are liable. Ard
he now respectfully submits It TO The Sen
ate with the hope that, in the process OF
consideration and enactment, It may be-
come, what he did not presume to promise
but which he earnestly desires TO see III
the possession Of the nation, Bank and
Fiscal Agent, free from constitutional OBJ
)eclions, adapted to the wants OF The coun-
try, and convenience Of the Government.
It is proposed to incorporate Bank IN
the District Of Columbia by the name OF
the Fiscal Bank Of the United States, ha-
wing capital Of thirty million of dollars,
with power to establish branches or Offices
Of discount and dcposte, in the several
States, with the assent Of the States; that
Government subscribe onefiilh part OF
the capital; and on the suPposltlon that It
IS the purpose Of Congress hereafter TO d.
rect that the fourth installmcnt, approPria-
ted by the deposito act Of June Odd, 1886,
shall be paid into the treasures Of the Sc
voral States, it is also proposed that sub
scrjpton to that amount be made IN the
United States, for the use Of the States
respectively; the stock 10 be assigned 10,
ard become the property Of such States as
shall accept the same, in the manner and
in the proportions, and subject to all The
conditions provided and imposed by that
act.
And for the amount Of the six millions
to be subscribed by the United States on
on their own account, and also for the
amount to be subscribed for the use cf the
several States, it is proposed that a stock
be created, bearing an interest Of five per
cent. per annum, redecmable at the plea
suro of the Government, at any time after
fifteen years.
Ia case Congress should not see fit TO
make such a provision as is proposed for
having to the States the fourth installment
under the dcpoSe act, it may be well worth
while to consider whether the States might
not be permitted to take the stock Of the
Bank according to their respective amount
Of population, 10 the extent of ten millions
in all, issuing therefor, stock Of their own,
bearing such interest, and reimburSablc at
such periods as might be prescribed; the
dividends on the shares thus held by the
States, respectively, TO he applied, in the
first place, to the payment Of the interest
on their stocks, with a farther provision,
if thought necessary, that, in case the pro-
cccds of the public lands should be assigned
10 the States, those proceeds should be APP
piled to the reimbursement Of the principal
of their debts, or stocks, created or issued
for the purposes aforesaid,
In the opinion Of the Secretary, il is de-
sirabIc TINT the States should be permitted
to take an interest in one of the foregoing
modes, or some other mode, in the new in
stiution; but, i, Congress should think
otherwise, then it is recommended that the
Government of the United States subscribe
for ten millions Of stock, leaving twenty
to he subscribed by individuals.
1t is proposed that the affairs OF the Bank
be managed by seven directors, two Of
them to be appointed by the President, by
and with the advice and consent of the Sc
nate, and five to be elected by the stock
holders at their annual meeting. a pres-
dent to be chosen by the directors out of
their own body.
That the branches be managed by not
more than seven, nor less than five direc-
tors, two Of them TO be appointed by the
States in which the branches may be stu
utcd, if such State be a stakeholder, and
the rest to be appointed by the directors of
the Bank.
1t is proposed that the Bank be the fis-
cal agent of the Government. That the
public moneys be deposited in it; and when
there, that they be deemed and taken to
be in the Treasury Of the United States.
and that the deposites be not removed ex-
ccpt by law, and that the notes of the said
Bank be receivable in the payment Of pub
lie dues, and that payments made by the
Treasurer Of the United States may be bv
checks on said Bank.
That the said Bank receive the funds of
tho United States; that it transmit them
from one part Of the Union 20 another.
and distribute them for the payment Of
public creditors, and perform the duty of
pension agent free of charge,
The ordinary powers and privileges of
banking institutions being conferred upon
it, and the ordinary liabilities and duties
imposed in order, TO prevent over-banking,
excessive issues, fluctuations in the price
OF stocks, and consequent specuations
therein, and TO secure the bill-holders and
other creditors of the Bank from danger
Of loss, ii is proposed
To limit the dividends to six per cent.