Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-07-01

mentS, most OF which the committee have in |
corporated i'm the draught of a bill which
they now report 10 the Senate. On this
draught they wish to offer to the Senate some
brief explanations and observations.
The committee have adopted Washington
city,proposed by the Secretary Of the Treasury,
as the place oflocatiou of the principal bank
They believe the place Of its location is a
subordinate question; but there are many adj
vahtages from the proximity of the Bank to
the Government. The distribution of the
capital ot the nank among the several com
nierciai cities, In proportion to their respect
I've wants and magnitude, is what they natu-
rally desire, and what will doubtless be done.
But to guard against the oXercise of any un-
due Government or official influence, or the
iinputation OF any unworthy transactions, the
committee have thought il expedien, TO de-
prive the parent Bank Of all power to make
any discounts or loans whatever, except loans
10 government, authorized by express law.
In order to ensure the command of the best
financial abilities of the country, the bill pro-
Vides that the Directors Of the Parent Board,
which Ia to consist of nine members, shall
be paid Tor their services by the Corporation,
and all compensation to the Directors, in the
usual form OF bank accommodations, is utter
ly prohibited.
Thus, the Direcrors of the Bank nj Wash
ington will become Board of Control, SUI
perintending the branches, supplying them
with a currency, and banking exclusively
through the agency of their Offices of dis
count and deposite.
The capital Of the Bank, proposed by the
Secretary, is retained; but power is resorv-
ed to Congress to augment it by the addition
of twenty millions, making the aggregate a
mount ultimately fifty millions of dollars, if
that should be found to be necessary.
To guard against undue expansion of the
currency by the operations of the Bank, va
rious restrictions and securities are introdu-
ced.
l. The dividends are limited TO ! per cent.
per annum; and, after accommodating reser-
we'd fund of two millions of dollars, to cover
losses and contingencies, the excess beyond
that seven per cent. is to be paid into the
public Treasury. And, whatever excess re-
mains at the end Of the charter, beyond the
reimbursement TO the stockholders Of the can
ital stock, Is also to he paid into the Treasu-
ry. If the dividends fall below seven per
cent. during any year of the charter, the de-
iciency is to be made good out ofthe surplus
SEES previously paid into the Treasury. The
effect OF this provision is, to make a perma-
nent and invariable seven per cent bank
stock, assuming that the administration Of the
Bank is conducted with integrity ana ability.
2. The debts due to the Bank are required
not TO exceed the amount of the capital stock
actually paid In and rs per cent thereon,
which Is greater restriction than usual.
The total amount of debts which the Bank
is authorized to contract, over and above the
deposltes, is not to exceed twenty-five milf
ons of dollars, which is also greater restric-
ton than was placed upon the late Bank of
| the United States.
B. The publicity which is required of the
general condition Of tho Bank, and the full
and complete exposure to committees of Con
gross, and To the Secretary of the Treasury,
which is amply secured, of all the books and
transactions OF the Bank, including private
! accounts.
4. The prohibition of the renewal Of any
loan thus pntting an end To all mere accom-
! mediation paper, as far as practicable, and
combining the Bank to fair business transact
tions.
And 5. The Bank is prohibited from ma
king any further discounts or loans whenev-
er It's notes In circulation exceed three times
the amount Of specie in its vaults.
! 10 protect the community and the stock
holders against mismanagement Of the Bank,
several provisions have been inserted, which
II is hoped may be etiec;uai.
l. No paid officer of the Bank is to re-
ccive loans or accommodations in an form
| whatever.
?. Securities are provided against abusive
use OF proxies, snch as that no officer of the
Bank can be proxy no proxy can give
more than 300 votes; no proxy to be good
which is of longer standing than ninety days,
sc.
3. A prohibition against the Corporations
| transacting any other than legitimate banking
business; excluding all dealing in stocks,
and all commercial operations.
4. a requisition that majority of the
whole number of the Board Of Directors shall
be necessary TO transact the business of the
Corporation.
3. Ample power to make the most
thorough examination into the condition and
proceedings of the Bank, down to the ac-
counts OF individuals, by totally removing
from tho Secretary of the Treasury and com
mittees of Congress the veil of secresy.
And o. by denouncing and furnishing as
felony, the crime of eInbezzlement OF the
funds OF the Bank when perpetrated by any
OF It's officers, agents, or servants.
/ Concurring entirely in the sentiment en-
| pressed by the Secretary of the Treasury,
that many wise and patriotic statesmen,
whose opinions are entitled to consideration
and respect, have questioned the power of
| Congress to establish a National Bank and
that 1t is desirable, as far as possible, to OBJ
vlate objections and reconcile opinions, the
committee have aitentively and earnestly ex-
amined the provision, incorporated in the
dranght of the bill of the Secretary, in re-
gard to the branching power of the Bank,
and they would have been happy ifthey could
| have reconciled it to their sense of duty to a.
dopt 1t. But after the fulles; consideration,
they have been unable TO arrive at that re-
! suit.
| 1t was not without some hesitation tina, the
committee agreed to the location of the Bank
In the District of Columbia. This they did
| bpcduSo Inl AZ. A.