Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-07-17
'Fwcnty-Scvrmth Congress.
EXTRA SESSION.
IN SENATE.
TuuRSrAY, June "A


fore the Senate, but to make some supplemental
explanations in addition to those contained in
the report Of the committee, which was commu
nirstcd to the Senate on Monday last. In ma
king those explanations, it would be his purpose
to he as bricr as possible, and he commenced by
declaring his adherence to the declaration in the
report; that he would not argue the constitution
atty of establishing n bank, nor the question oil
the cXpediency Of such 81 institution, though he
might, in the course Of his remarks, say some.
ching on one or two objections to it.
The first point that would attract the attention
OF the Senate in the bill which was before then
was the capital Of the bank and it appeared to
him that the elements, combination oil which
point ont what that capital On2ht to be, were po-
puaun, wealth, commercial business, both Tor.
ricn end domestic, and superficial extent OF ter.
rory These were the clements to guide them
IL these might be added the experience OF the
country in the establishment Of prior banks
Now if they took the latter, or though there were
others that were proper TO be considered, yet
there might he a diversity OF opinion about their
premises and conclusions but he thought popuIa
ton, commerce, wealth, superficial extent oil the
country, and its general business, constituted the
elements out of which must spring the proper CAPT.
lal to he assigned to a national bank. Now what
had been done before! The first bank capital was
tea millions: let them now see what ought TO be
the capital, taking that as criterion. That was
established fifty years ago to speak IN round num-
hcls and ten millions was supposed to be suit.
able capital. Taxing therefore the first bank
and the population of that period as their guide,
the capital of bank now ought TO be 100000
600. The last established bank was that Of
1916, which was established with a capital OF 80
millions. but nasmuch as one fifth part was sub
scribcd by the nation, the amount might be redu.
ccd to % millions. Taking then the capital Of
that amount and the population Of that period as
criterion the capital Of bank now should be Sc
millions. He had thus pursued one Of the ele-
ments which he had enumerated but to take
auother-the wealth and business Of the country.
Could any one doubt that it had more than ire.
hlcd Since 1916, or that it was more than six or
eight times greater than in the year 90? He
thought it was indisputable. Well, then, if they
put aside population as their guide in the fxation.
and assumed the wealth OF the country, the CAPT.
tai ought 70 be three times greater than in 1886,
and six Or eight times greater than in the year &c..
Well, but average and compound the results Of
wealth and population, and in that view Of the
Ease the bank capital now would be 20 or so mil
lions, if they pursued the principles established
in the former banks. But if they went TO the su-
perfcia extent Of territory, what an immense
change had taken place since the year 80, and
even since 1916. Since the year 80 the whole
country Of the lakes had been settled; Louisiana
had been acquired; Georgia, by her cesson Of
the country constituting Mississippi and Alabama,
had enabled them to make those States, and all
the country west Of the Ohio had been settled
Taking then and comparing what was the CAPT.
tai Of 90, the capital now ought to be much
greater than it was in the bill. But since 1916
Florida had been acquired, and the country Of
the Lakes had been chiefly settled, and the CAPT
tai then should be still further increased. Again
look at the business at the exports and imports
OF trade-and compare them with the trade Of the
gear '9O-lako an average of years, and not OF
such an extravagant period as that Immediately
succeeding the termination Of the war-nud they
saw an increase nearly in proportion TO the in.
crease Of the population Of the country. But il
they took internal wealth, and the produce by
manufactures, and other industrial arts, he was
sure that no Senator would differ from him, in say
iug, that since 1916 it had been at least trebIcd
We'll then. combine and add the whole together
aud the result would be that the capital oil {
bank should be now above what had been stated
taking the indications which these things would
lead them to, and he was aware OF what nigh
he said OF the establishment Of local banks; bu
when they looked at the crippled condition o
those banks, and the bad order in which they ex
lsed aud that vast proportion Of their capita
was merely nominal and Ineffective he did no
think what he had said WAS weakened by the mul
Gpcation Of banks since the year 80 or 1916
Without dwelling on this branch Of the subec
he thought the capital OF 80 millions, which va
fixed by this bill was not one which any Senate
ought, in his opinion, to think eXlravaCantly high
With regard to the reservation of power to add t
that capital the sum Of twenty millions, it was
reservation to which there was no Just ground t
object If it was discovered that 30 million
was not enough, the power was reserved to adj
the 20 millions; but If the addition Was m
necessary Congress Of course would not exoG
else the power
lie would pass then from the capital TO the ohc
considerations, and the first question that suggest
ed itself was in relation to the proportion i
which the capital was divided between the GOV
crnment and individual stock hsldcra. lie a.
mtted the amount TO he held by the Government
was increased in the proportion assigned by or
mer banks; now, one third was the proportion
formerly it was one-fnh-- but he believed no cv
could arise out Of it, os the weight Of governmef
was given 10 individual foresight. 1t maltere
bat little what the proportion might be- lor then
was enough Of security, rs respected iudivdu,
management, to guard against any undue inl
ence on the part OF the government. Tho 90
eminent was to subscribe BY stock at an iElere
of five per cent, and in return to receive soc
which would yield an annual dividend Of SIEVE
per cent, making gain Of $500 600 d year, O
tho a,ununt of lis SubSc.iDtOn duripp the ,rhn