, 1841-08-28

where in payment Of public dues.
1t had, up to that period, dealt to but a
very small extent 10 exchanges, either foreign
or domestic, and as late as 1898 its opera
tons in that line amounted to a little more
tban seven millions Of dollars per annum.
A very rapid augmentation socn after occur.
red, and 10 1888 its dealings in exchanges
amounted to upwards of ono hundred mil
lions Of dollars, including the sales Of its
own drafts; and all these immense transac.
tons were effected without the EMPLOYMENT
Of extraordinary means.-The currency Of
the country became sound, and the negocia-
tons 10 the exchanges were carried on at
the lowest possible rates. The circulation
wal increased to more than S29.O 600, and
the notes Of the bank were regarded as equal
to specie oil over the country; thus showing
almost conclusively that it was capacity TO
deal in exchanges and not local discounts.
which furnished these facilities and advan,a.
ges. 1t NAV be remarked too, that notwi,h.
standing the immense transactions of the
bank in the purchase Of exchange, tho loss
e. sustained were merely nominal; while in
the line vi discounts the suspended debt was
enormous, and proved most disastrous to the
bank and the country. Its power Of local
discount has. in fact proved 10 be a fruitful
source OF favoritism and corruption. alike
destructive 10 the public morals and to the
sweal.
The capital invested 10 banks of discount
in the United States, created bv the
States, ct this times exceeds SIS, OO0.o 1000:
and 1t the dlscOunting of local paper coulo
hava prnd,,roA anr knn.El A. ~
States ought TO possess the soundest curren.
cy 10 the world; but the reverse i, Iamenia
bly, the fact.
Is the measure now under consideration Of
the objsctiOnably character TO which | have
alludsdf 1t is clearly so, unless BY the 10Th
fundamental article of the IIth section i, is
made otherwise. That article is in the fol.
lowing words:
"The directors Of the said corporation shall
establish one competent Office of discount
and dep site In any state IN which two thou
sand shares shall have been subscribed, or
may be held whenever, upon application of
the legislature of suchState. Congress NAV
by law require the same. And the said di.
Iectors may also establish one or more com.
pelent Offices of discount and deposit in any
= VI oisiitSt VI tC OuttSu StulcSs
and in any State, with the assent of such
State; and when established, the said office
or Offices shall be only Withdrawn or reno.
we'd by the said directors prior TO The expi-
ration OF this charter. with the previous as
sent Of Congress: Provided, in respect Ia
any Stale which shalt not, at The first session
OF the legislature thereof. held after the pas-
sage OF this act, by resolution, or other usl.
al legislative proceeding, uncondltionalIv as
sent or dissent to the establishment of such
office or Offices within it, such assent of the
shall be thereafter presumed: And
Prorlded, Nevertheless. That whenever i,
sha become necessary proper for carving
into %executi"n any OF the powers granted by
the Constitution. {" establish an Office or Of
noes in any uf the States whatever, and the !
establishment thereof shall be directed bv
law. 1t shall be the duty Of the said directors
to establish such office or Offices according
Iy.
1t will be seen that by this clause the di
are invested with the fullest powerI
to establish a branch in ary Safe which has
its assent; and having oncp establish
ed such branch, it shall not afterwards b.
except by order of Congress-.
Such assent is TO be implied. and to have The
force and sanctI"n of an actual v expressed
assent, ~"provided in respect to any STATE
shall moi at The first session Of the le-
thereof. held after the passage of
act, by resolution or other usual l~eIIsla-
live proceeding, Internationally assent or
assent Ia the establishment of such uffce or
,fices within it. such assent of said State
hail be thereafter presumed. The assent
Or dissent Is to be expressed unconditional.
It the first session Of the legislature, by some
ormal legislative act; and If not so express
ID, its assem- is to be implied-and the direc-
are thereupon invested with power, a,
'uch time thereafter as they my please, to
branches, which clnnot afteru ards
be wrtrdrawn. except by resolve of Con-
yress. No matter what may be the cause
may operate with the Legislature,
either prevents it from speaking or ad-
itself to its wisdom, to induce delay
Is assent is to be implied. This iron rlle
8 to give way to no circumstances-it is I'm
and inflexible. 1t is the language of
he master to the vassal-an unconditional
lnswer is cl,imed forthwith; and delay, post
,t,nemenf- mr. incsnacitv IN onsu.r croI, L