Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1841-09-16


with similar powers, for twenty years
with express reserva ation, in the sare
clause, 10 modify or create any bank for
the district of Columbia 81 that the ag-
gfegate capital shmM not exceed 6ve
migIIvns-wihoute enumerating other fea-
tures which are equally distinctive and
eharactcristic-c clearly show that Il can
not be regarded as other than u Bank oi
the United States, with powers seeming
" more limited than have heretofore been
granted by such an institution. II ope-
ruies per sc over the Union, by virtue Of
the unnided, and, in my view, assumed
authority, Of Congress as national leg
islature, as dis,ing guished from a Bank
created by Congress for the District Of
Columbia, as the local Legislature Of the
District. Every United States Bank
heretofore created, has aad power to
deal in bills of exchange as well as local
discounts. Both were trading privileges
conferred, and both exercised ny virtue
of the aforesaid power Of Congress, over
the whole Union. The question Of pow
er remains unchanged without reference
to the extent Of privilege granted. IL
this proposed corporation is to be regar-
ded rs a local Bank Of the District Of
Columbia, invested by Congress with
general powers to operate over the
Union, il is obnoxious to stll stronger
objections. II assumes that Congress
inny invest local institution with gener-
nj or national powers. With the same
propricty that il may do this in regard to
Al e r.l,
may as to a State Bank. Yet, who can
indulge the idea that this Government
can rightirIly, by making State Bank
its fiscal agent, invest it with the abso-
lutte md unqualified powers conferred by
this bill! " ben come 10 look to the
details Of the Bill, they do uot recon-
mend il strongly TO my adoption. A b,ief|
notice Of some Of its provisions will
sufice:-
Ist II may justify substantially sys-
TEN Of discounts of the most objc ctionable
character. II is to deal in bills Of en-
change drawn in ore state and payable
in another, without any restraint. The
bill Of exchange may have an unlimited
term 10 run, and It's renewabllity is no
where guarded against. II may, in fact,
assume the mort Objectionable form Of
accommodation. Ii is not required to
rest oil any actual, real or substantial ex-
change basis. A drawer in one place
becomes the acceptor in another, aud so
in turn the acceptr may become the
drawer upon mv,ual understanding -
il may at the same time indulge in mere
local discounts under the name Of bills OF
exchange. a bill drawn at Philadel phia
on Camden, New Jersey-at New York
on border town m New Jersey-ai
Cinc innaii on Newport, ntucky, not TO
multiply other examples, might, for any
thing in this bill 10 restrain it, become u
mere matter Of local accommodate ton
Cities thus relatively situated would pos
sess advantages over cities otherwise
situat.sl, Of so decided character as
most Justly 10 excite dissatisfaction.
Second. There is no limit prescribed
10 the premium in the purchase Of bills
M exchange, thereby correcting none of
the evils under which the community
now labors, and operating most injurious
ly upon the agricultural States, in which
the inequalities in the rates Of exchange
nre most severely felt. Nor are these
the only consequences: resumption OF
specie payments by the banks Of those
States would be liable 10 indefinite post
ronement-f for, us the operation Of the
agencies Of the interior would chiefly
consis, in selling bills Of exchange, and
the purchases could only be made in spe-
Gle or the notes OF banks paying specie,
the State banks would either have to
continue with their doors closed, or ex-
isl nj the mercy Of this national monopoly
Of brokerage. Nor can il be passed over
without remark, that. willis, the District
Of Columbia is made the seat Of the prn-
cipal bank, its citizens are excluded from
all participation in any benefit it might
afford, by positive prohibition on the
hank from all discounng within the
District.
These are some of,he objections which
prominently exist against The details of
the bill, others might be urged Of much
iorce-but it would be Improbable to
dwell upon them. Suffice il to add, that
this charter is designed to continue for
twenty years without n competitor--ihat
the defects to which have alluded, be-
ing foundod in the fundamental law of
the Corporation, arc irrevocable-nnd
that il the objections be we'll founded il
would be over hazardous to pass the bill
into law.
In conclusion, | take leave mos, res
pect(ully TO say, that have felt the most
anxious solicitude to meet the wishes Of
Congress in the adoption Of Fiscal
Agent which, avoiding all constitutional
objections, should harinonize conflicting
opinions. Aciuated by this feeling,
have been ready to yield much, in spiri,
OF Cancellation, TO the opinions of others.
And il is with great pain that l now feel
compelled to differ from Congress Sc
cond iiIne in the same session. AT the
com,nenceme Of this session, inclined
from choice to defer TO tho Legislative
will, submitted TO Congress the propris-
~ OF adopting a Fiscal Agent which,
without violating the Constitution, would
separate the public money from the Ex-
ecuiive control, perform the operations
Of the treasury without being burthen-