Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1841-08-19


changes amounted to upward of $780,.
0O0, 900, including Ire sales Of its own
drafts aud all these immense tfansnc-
iions were effected without tho employ.
ment Of extraordinary means. The cur
rcncy Of the country became sound, and
the negotiations in the exchanges were
carried on al the lowest possible rates.
The circulation was increased TO mare
than S22 ,000, 900, and the notes Of the
bank were regarded as equal TO specie
NIL over tho country thus showing, nj
most exclusively, that il was their ca
paciiy to deal in exchanges, and not in
local discounts, which furnished these
facilities and advantages. 1t may bo re-
membcred, too, that Notwithstanding the
immense transactions Of the bank, in the
purchase of exchange, the losses sus-
tanned were merely nominal while in
the line Of discounts, the suspended deot
was enormous, and found most disastrous
to the bank and country. Its powers of
local discount has, in fact, proved to be
d fruitful source Of iavoritism and cor
rup,ion, alike destructive to the public
morals and to the general veal
The capital invested in banks of dis
count in the United States, created by
the States, at this time exceeds $3.50
O0O, 900 f; and if the scounting OF loca al
paper could have produced any beneficial
effects, the United States ought to pos
ses the soundest currency in the world,
but the reverse is lamentably the fact.
Is tho measure now under consdera-
ton, Of the Objectionable character to
which | have alluded, II is clearly so,
unless by the 10th fundamental article
Of the lth section it is made otherwise.
That article is in the following words:--
"The directors Of the said corpora.
tion shall establish one competent Office
of discount and deposite in any State in
which two thousand shares shall have
heen subscribed, or may be held, when
ever, upon application Of tho Legisla-
ture of such State, Congress may, by
law, require tho same. And the said
directors NAV also establish one or more
competent Offices Of discount and depo~
site in any territory or district OF the
United States, and IN any state, with the
assent Of such state and when estab-
lishcd, tho said Office or Offices shall bo
only Withdrawn or removed by the said
directors, prior to the expiration Of this
charter, with the previous assent OF Con-
gress: Provided, in respect to any st ate
which shall not, at the first session OF
tho Legislature thereof, held after the
passage Of this act, by resolution or 9th
er usual legislative proceeding, uncon-
ditionally assent or dissent to the esab-
lishment of such office or Offices within
it, such assent of the said state shall be
thereafter presumed and provided, new
ertheless, that whenever it shall become
necessary and proper for carrying into
execution any OF the powers granted by
the constitution, to establish an Office or
Offices in any Of tho states whatever,
and the establishment thereof shall be
directed by law, it shall be the duty OF
The said directors 10 establish snch Office
or Offices accordingly"
1t will be seen that by this clause the
directors are invested with the fullest
power to establish branch in any state
which has yielded its assent, and having
once established such branch, it shall
moi afterwards be Withdrawn except by
order of Congress. Such assent is TO
be implied and have the force and sane =
ton Of an actually expressed assent,
"provided in respect TO any state, which
shall not, a, the first session Of the Leg
islature thereof held after the passage
Of this act, by resolution or other usual
legislative proceeding, Internationally
assent or dissent to The establishment Of
such Office or Offices within it, such as
sent Of said state shall be therefore pre-
sumcd"
The assent or dissent is to be express
ed Internationally at The first session Of
the legislature by some formal legislative
act; and if not so expressed, its assent
is 10 be implied, and the directors are
thereupon invested with power, at such
time thereafter as they may please, to
establish branches, which cannot after
ward be Withdrawn, except by resolve of
Congress matter what mny be the
cause which may operate with the lie.
gislature, which either prevents it from
speaking, or addresses itself to its wisdom
to induce delay, its assent il to be ini-
piled. This iron rule is 10 give way to
no circumstances--binding aud infexI-
blc-it is tho language of the master to
the vassal; an unconditional answer is
claimed forthwith, and delay, postpone
ment or incapachy to answer, produces
an implied assent, which is ever after
irrevocable.
Many Of the state elections have al.
ready taken place, without any know
ledge on the part OF the people that such
a question was to come up. The rep
rose natives may desire submission Of
the question to their constituents prepar-
atory to final action upon it, but this
high privilege is denied: whatever may
be the motives and views entertained by
the representatives OF the people to in
duce delay, their assent is to be presu.
med, and is ever al,erward binding, uD-
less tho assent shall be uncondiiionally
expressed at their first session after the
passage Of the bill into law.
They may by formal resolution declare
the question Of assent or dissent TO be
undecided aud postponcd, and yet, in