Jeffersonian Republican. [volume] (Stroudsburg, Pa.) 1840-1853, 1841-09-15

not exceed five millions; without enumeratng
olber features which are equally distinctive
and characteristic, clearly show that it can
not be regarded as other than Bank of the
United States, with powers seemingly more
limited than have heretofore been granted to
such an institution. 1t operates per Sc over
the Union, by virtue of the unaded, and, in
my view, assumed authority of Congress as a
National Legislature, as dis,inguishable from
bank created by Congress for the District
of Columbia, as the local Legislature of The
District Every United States Bank here
iolore created has had power TO deal in bills
of exchange,a as we'll as in local discounts.
Both were trading privileges conferred, and
both exercised, by virtue Of the aforesaid
power of Congtess, over the whole Union.
The question of power remains unchanged,
without reference to the extent of privilege
granted.
If this proposed Corporation is to be regar
ded as local bank Of the District of Coum-
bia invested BY Congress with general pow
ers to operate over the Union, it is obnoxious
to still stronger objections. 1t assumes that
Congress may invest local institution with
general or national powers. With the same
propriety that it may do this in regard TO a
bank of the District of Columbia, it may as to
State bank. Yet who can indulge the idea
that this Government can rightfLlly, by ma
king a state bank its fiscal agent, invest it
with the absolute and unqualified powers con-
ferred by this billi
When come to look at the details of the
bill they do not recommend it strongly to my
adoption A brief notice of some of its pro-
visions will suffice.
First. Itmay justify substantially system
of discounts of the most Objectionable charac-
ter. 1t 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 renew
ability is no where guarded against. 1t may,
in fact, assume the most Objectionable form of
accommodation paper. 1t is not required to
rest on any actual, real or substantial ex-
change basis-a drawer in one place becomes
the accepIor in another, and so on in turn the
acceptor may become the drawer, upon mu-
tual understanding 1t may, at the same time
indulge in mere local discount under the name
of bills of exchange
A bill drawn at Philadelphia on Camden,
New Jersey; at New York on d border town
in New Jersey; at Cincinnati on Newport,
Kentucky, not to multiply other examples.
might for any thing in this bill to restrain it,
become mere matter of local accommoda-
ton. Cities thus relatively situated would
possess advantages over cities otherwise stu
ated, OF so decided character as most justly
TO excite dissatisfaction.
3D. There is no limit prescribed to the
premium in the purchase of bills of exchange;
thereby correcting none of the evils under
which the community now labors, and opera
ting most injuriously upon the agricultural
States in which the inequality in the rates of
exchange are most severely felt. Nor are
these the only consequences. A resumption
of specie payments by the banks OF these
States, would be liable 10 indefinite postpone>
meRt; for as the operation of the agencies of
the interior would chiefly consist in settling
bills of exchange, and the purchases could
only be made in specie, or in notes of banks
paving specie, the State Banks would either
have 10 continue with their doors closed, or
exist at the mercy of this national monopoly
or brokerage.
Nor can it be passed over without remark,
that whilst the District of Columbia is made
the seat of the principal bank, its citizens are
excluded from all participation in any benefit
1t might afford, by positive prohibition of the
Bank from all discOunting within the District.
These are some of the objections which
SHlSl against the details OF Tie
bill; others might be urged, of much force,
but it would be Improbable 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 in the fundamental law
OF the Corporation, are irrevocable and that
! If the objections be well founded, it would be
over hazardous to pass the bill into law.
! In conclusion, | take leave most respectful
| ly TO say, that have felt the most anxious So
licitude TO meet the wishes of Congress IN the
! adoption OF a Fiscal Agent which, avoiding all
constitutional objections, should harmonic
conflicting opinions. Actuated by this feel
ing, have been ready to yield much, IN spi-
TIT OF conciliaton, to the opinions Of others,
and 1t IS with great pain that now feel COM
peeled 10 differ from Congress a second time
/ IN the same session.
AT the commencement of this session, incli-
ned trom choice TO defer TO the legisla-
tive will, submitted to Congress the propre.
ty of adopting Fiscal Agent which, without
violating the Constitution, would separate the
public moneys from the Executive control,
perform the operations of the Treasury, with
out being burthensome to the people or incon-
venent, or expensive to the Government. I,
is deeply to be regretted that this Department
OF the Government cannot, upon constitution
al and other grounds, concur with the Legisla'