The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-08-24

menI Ia collect, safely keep, and disburse the
public revenue, & incidentally regulate the com
merce and exchanges, | have not been able 20
satisfy myself that The establishment. by this
Gnvernment, Of a bank Of discount. in the ordi-
nary accepraiion OF thai term, was a necessary
means rr ote demanded by Proprie,y, 10 Cxeruir
those pnwer>. What can the local discounts OF
a bank have 10 d with the c"l.ecIing. satr-keep-
ing ard cisbur>ing OF lie revenue?
81 far as the me'e distountIng Of paper j.
conc rned, il is quite immaIerial 20 this qIes'i"n.
whether The discount is obtained al a Stale Bank
or U S. Bark.
They are bo'h equally local-b, th beginning
AMI both ending in a local accommodation. What
influence have local discounts. granted by any
form of banks. in the regulating OF the currency
and The exchanges? Let the history o. the late
United States Bank aid Us in answering this
inquiry.
Fer several years after the establishment IF
that institution, it d.alt almost exclusively in
local discounts, aud during that per cd, the coun-
try was. Tor the muSt part, disappointed IN the
consequences anticipated from its Incorporation.
A uniform currency Was not provided, "xchan-
ges were Ii u reaula'ed, and little or nothing was
added 10 the general circulation AID in 1920 its
Embarrassment had become so great, that the
directors petiIioned Congress 10 repeal that ar
tcle of the charter which made its notes rrceiva-
Bile every where. in payment of public dues.
1t had. up IL that perind. dealt Ia but a very
small txtrnt in exchanges. either frreign or do
nestle and as late as 1928, its operat Ons in
that line amounted 10 a liule NOR Than 1000
900 per annum n very rapid augmenlatiun suon
after occurred, and in 1888, its dralings i" the
exchanges amounted to upwards of SI00, 600, 900
including tie sales oil its oXn drafts; and all
these immense transactions were effected with
out the employment Of ex' raCr 'inary means.
The currency Of the country became sound, and
the negotiations II the exchanges were carried
on al the lowest possible rates.
The circulation was increased 10 more than
S22, OcO, 900, and the notes OF the bank were re-
garded as equal 10 specie all over the country /;
thus showing, almost conclusivelY, that it was
their capacity Ia deal in exchanges, and not in
local discounts. which furnished these facilities
and advantages. 1t may be remembered, Ion,
that Notwithstanding lie Immense transactIuns
of the bank, in The purchase Of exchange, The
losses sustained W. re merely nominal; Will in
The line Of di-counts, tie suspended debt was
enormous. and found most d~.sastrou, 10 the hank
and country. Its power OF local discount las. in
fact, proved 10 be IA fruitful source Of favoritism
and corruption, alike destructive 10 the pub ic
morals aud To the general veal.
The capita. invested in hanks of discount in
! The United States. created by the States, at this
time exceeds $3.50, 900 900, and if the discoun-
ting of local piper could have produced any
beneficial effects the United States ought to pos
sess The soundeSt currency in The world, but tie
rev. re is lameulably the fact.
Is the measure now under consideration, of the
oblec ionab'e cI aracteI 10 which Lave al uded ?
1t is clearly so, unless by the 10Th fundamental
article Of the 18th section it is made otherwise.
! That article is in the following words =
The directors of Inc SAT-! Corporation shsll es-
tablish me comp tent office OF discount and de-
DosIle in any State in which ~" thousand shares
shall have heen subscribed, or :nay be held,
whenever upon application Ct The Legislature o.
s-oI S,.tnc p,ra NJ q. hr Iauu anr a..
same. And the said directors may also cstab-
llsh one or more competent off :es nf discount
and deposit n any Terrlt ~ or District OF The
United St1tes. and ia any State, with the assent
Of such State and when established, the said
office or Offices shall be only wilhd avn or re-
moved by the said directors, pri T 10 the expira-
ton of this charter, with the p,cvinus assent of
Congress:
Provided. in respect 10 any State which shall
not, at the first session OF the Legislature there
OF. held after the passage of this act, By resolu-
lion OF otherIusual legislative proceeding, uncon
dIioGaliy assent or dissent 10 the establishment
Of such office or Offices within il, such assent Of
the said State sh II he there after presumed aud
= provided nevertheless, That whenever it shall
beco e necessary and proper FIR carrying into
execuiinn any of tre powers granted by the
/, Constitution, 10 establish an cffce OF offices in
any Of the Sales whatever, and the establish
ment thereof shall be directed by law, il shall be
the duty OF the said directors 10 establish such
office or offices accordingly
= Ii will be seen that by this clause The direc-
t,rs are invested with the fullest power 10 eStab-
lIsh a branch in my stale which has Welded its
r assent. and having "nce established such branch,
= il shall no. afterwards be Withdrawn, except by
order Of Con1ress. Such assent is 10 be implied.
and nbive the force md sanction Of an actually
4 expressed assent, "proviied in respect to any
, State which shall mol, at the first Session Of
;" tho I eoisIafura fhsrpuf nplb affpr tho n c : g. o. If
. this act. by resolution or oiher usual legislative
Proceeding, uncondiIiunally assent or dissent TO
I the establishment of such Office or offices witiiip
I il. such assent Of said Stale shall be thereafter
presumed"
i, The assent nr disassent is to be expressed un
I cordiIinnally at the first session of the Legisla-
r lure, BY some formal legislative act aud if moi
e ST. expressed, lis assent IS to be implied, and the
director. are therefore invested with pnwer. al
4 such time thereof as they NAV please TO establish
branches, witch cannot afterwards be withdrawn
except by resolve OF Conaiess-nO matter what
| may be The cause which may operate with the
Legislature, whirh either pre-, ents it from speak.
ing. or addresses itself 10 its wisdom to induce
delay. its asst nj is 10 be implied binding and
inf. xible Ii is the lawgiver Of the master TO the
q vassal an unconditional answer is claimed forth
with, and delay, postponement, or incspac ~ to
answer. produces an implied assent, which is
ever after irrevocable.
Many OF the State elections have already taken
% place, without any knowledge on the part oil the
prople tI,ar such a question was TO come up
e The representatives may desire a submission Of
the question to their constituents prepa ratory to
final action upon it. but this high privilege is de-
MED whale yer may be the motives and views
. entertained by the representatives of the penplt
+, induce delay, their assent is TO be presumed
and is ever afterwards binding, unless their as
sent shall be Internationally expressed at theil
N first session after the passage of this bill into a