The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-09-11

the local Legislature of the District Every United
States Bank heretofore created has had power TO deal
in bills of exchange as well as local discounts Both
were trading privileges conferred, and both were ex-
ercised by virtue of the aforesaid power of Congress-
over the whole Union. The question of power re-
mains unchanged without reference 10 the extent of
privilege granted If this proposed Corporation is to
be regarded as local Bank ofthe District of Colum-
bia invested by Congress with general powers to ope-
rate over the Union, ii is obnoxious to still stronger
objections. 1t assumes that Congress may invest
local institution with general, or national powers
With the same proprety that it may do this in regard
to Bank of the District of Columbia, il may as to
State bank. Yet who indulge the idea that this
Government can rightfully, by making State bank
its fiscal agent invest it with the absolute and un-
qualified powers conferred by this bill When come
to look at the details of the bill, they do not recon-
mend it strongly TO my adoption. A brief notice of
some OF its provisions will suffice.
LIST. II may justify substantially system of dis
counts of the most Objectionable character Il is to
deal in Bills of Exchange drawn in one State and
payable in another without any restraint The bill
of exchange may have an unlimited time to run,
and its renewabity is where guarded against. Ii
may, in fact assume the most Objectionable form Of
accommodation paper II is not required to rest on
| any actual, real or substantial exchange basis. A
drawer, in one place, becomes the acceptor in an
other, and in turn the acceptor may be come the
drawer upon mutual understanding. It may, at
the same time indulge in local discounts under
the name of bills of exchange A bill drawn at
Philadelphia, on Camden, New Jersey at New York,
on border town in New Jersey; at Cincinnati, on
Newport, in Kentucky; not to multiply other exam
pies, might, for any thing in the bill to restrain it, be-
come mere matter of local accommodation. Cities
thus relatively situated, would possess advantages
cities otherwise situated of decided character
as most justly to excite dissatisfaction. =.
ID. There is no limit prescribed to the premium
in the purchase of bills of exchange. thereby cor
recting none Of the evils under which the community
now labors and operating most njuriously upon the
agricultural States in which irregularities in the rates
Of exchange most severely felt. Nor are these
the only consequences. A resumption of specie pay
ments by the banks of those States would be liable
indefinite postponement for the operation of the
agencies of the interior would chiefly consist in sell
ling bills of exchange, and ths purchases could only
be made in specie the bills of banks paying specie
4
their doors closed or exist at the mercy of this ma
tonal monopoly of brokerage Nor can it be passed
over without remark that whilst the District of Co
lumba is made the seat Of the principal Bank, its
citizens are excluded from all participation in any
benefit it might afford, by positive prohibition the
Bank from all discounting within the District.
These are some ofthe objections which prominently
exist against the details of the BILL Others might
be urged Of much force, but il would be unproft-
able to dwell upon them. Suffice it to add that this
charter is designed to continue for twenty years
without competitor; that the defects to which, have
| alluded being founded on the fundamental law of
the corporation rrevocable; and that if the OBJ
jections be well founded it would be over-hazardous
| to pass the bill into law.
In conclusion, take leave most respectfully to say
that have felt the most anxious solicitude to meet
the wishes Of Congress in the adoption of Fiscal
Agent; which, avoiding all cons ttutional objections,
should harmonic conflicting opinions. Actuated by
this feeling have been ready to yield much in spirit
of Cancellation to the opinions others And il is with
great pain that now feel compelled to differ from Con-
gress second time in the same session. AT the COM
mencement ofths session. inclined from choice to defer
TO the Legislative will, submitted to Congress the
propriety of adopting Fiscal agent, which, with
out violating the Constitution, would separate the
public money from the Executive control and perform
the operations Of tho Treasury without being burden
some to the people or inconvenient or expensive
to the Government 1t is deeply to be regretted that
this Department of the Government cannot upon
constitutional and other grounds, concur with the
Legislative Department in this last measure proposed
to attain these desirable objects Owing to the brief
space between the period of the death Of my amented
predecessor and my own installation into Office,
was, in fact not left time to prepare and submit de-
fnve recommendation of my own in my regular mes
sage and since, my mind has been wholly occupied in
most anxious attempt to conform my action to the
, Legislative will In this communication, am con-
fined by the Constitution to my objections simply to
this bill; but the period of the regular session will
soon arrive when it will be my duty, under another
clause of the Constitution, ]" to give to Congress in
formation Of the state of the Union" and recon-
mend to their consideration such measures as :" /
shall Judge necessary and expedient." And most
respectfully submit in spirit Of harmony, whether
the present differences Of opinion should be pressed
further at this time-whether the peculiarly Of my
situation does not entitle me to posponment of this
subject TO more suspicious period for deliberation.
The two Houses of Congress have distinguished
themselves at this extraordinary session by the per-
formance of an immense of labor, at very
unfavorable both to health and action; and have pass
ed many laws which, trust, will prove highly bene
fetal to the interests of the countryan and fully
just expectations Il has been my good fortune and
pleasure to concur with them in all measures except
this; and why should our difference on this alone be
pushed to extremes. 1t is my anxious desire that i
should not be. ], too, have been burdened with ex
traordnary labors Of late and sincerely desire time
for deep and deliberate reflection this the greatest
difficulty ofmy administration. May not pause
until more favorable time, when, with the most anx
ious hope that the Executive and Congress may cor
daily unite, some measure Of finance may be deibe
ratey adopted promotive Of the good Of our common
country.
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