The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-06-19
PLAN OF A BANK AND FISCAL AGENT,

ting to the Senate, in compliance nun a IeS''O'@
that body, plan of Bank and ftsea' agent
" T,r,sURy DEPARTMENT, June IL, 1871.
To the President of the United States
Sin Tn obedience to the directions OF the Senate
contained in their resolution of the 7h Instant the
sec,e ary of the Treasury has prepared and herewith
submit. a plan of Bank and Fiscal Agent.
In the general plan and frame of said institution, he
Ia, endeavored to free it from the constitutional obec-
tons which have been urged against those heretofore
created by Congress- and as far as practicable with
out mpairing its usefulness to guard it in its details
anst the abuses to which such institutions La
BILE. And he respectfully submits it to the Sen
ate with the hope that in the process of consideration
and enactment il may become, what he did not pre-
sumo to promise but which he earnestly desires to
in the possession of the nation, Bank and Fiscal
Agent free from constitutional objections and adapt
e to the wants of the country and convenience of the
Government
II is proposed to incorporate Bank in the District
of Columbia, by the name of the Fiscal Bank of the
United States having capital of thirty millions Of
dollars with power to establish branches or Offices Of
discount and derosit in the several States, with the
sent of the States that the Government subscribe one
is the purpose of Congress hereafter to direct that the
fourth nstament, appropriated by the deposit act of
June 49, 1885, shall be pail into the treasures Of the
several States it is also proposed that subscription TO
that amount be made in the of the United Staes
for the of the States respectively the stock to I've
assigned to, and become the property Of such States
as shall accept the same, in the manner and in the pro-
portions and subject to all the conditions, provided and
imposed by that act.
And for the amount of the six millions to be sub
scribed by the United States on their own account,
and also for the amount to be subscribed for the Of
the several States, is proposed that stock be
ted bearing interest of five per cent per annum,
deemabe at the pleasure of the Government at any
time after fifteen years. nm-
In case Congress should not see fit to make such
provision is proposed for paying to the States the
fourth instalment under the depose act, it may be
well worth while to consider whether the States
might be permitted to take the stock of the Bank
according to their respective amount of population, to
the extent of ten millions in ALL issuing therefor stock
of their own, bearing such interest and reimbursable
at such periods might be prescnbed the dividends
the shares thus held by the States respectively to
be applied, in the first place, to the payment ofthe
interest their stocks with further provision, if
thought necessary, that, in the proceeds ofthe
public lands should be assigned to the States those
proceeds should be applied to the reimbursement of
the principal of their debts, stocks created or is
sued for the purpose aforesaid. ....e ... =.
In the opinion of the Secretary it is desirable that
the States should be permitted to take interest in
of the foregoing NODES some other mode in the
institution but if Congress should think other
WISE then it is recommended that the Government of
the United States subscribe for ten millions of stock
leaving twenty to be subscribed by individuals.
1t is proposed that the affairs the Bank be manag-
cd by directors two ofthem to be appointed by
the President by and with the advice and consent of
the Senate and FIVE to be elected by the stockholders
At their annual meeting. president to be chosen
by the directors, out of their own body. '@
That the branches be managed by not more than
seven nor less than five directors two of them to be
appointed by the States in which the branches may be
situated if such State be stakeholder and the rest to
be appointed by the directors ofthe Bank. @
It is proposed that lbe Bank be the fiscal agent of
the Government that the public moneys be deposited
in III and when there that they be deemed and TAX
on to be in the Treasury Of the United States;
and that the depostes be not removed except by law
and that the notes of the said Bank be receivable in
payment Of public Dues and that payments made by
the Treasurer of the United States may be by checks
on said Bank. -s .a g..
That the said Bank receive the funds ofthe United
States; that it transmit them from part ofthe
Union to another, and distribute them for the pay
ment of public creditors and perform the duty pen
sion agent free fcharge.
d The ordinary powers and privileges of banking in
situations being conferred upon it, and the ordinary
liabilities and duties imposed in order to prevent
banking, excessive issues fluctuations in the price of
stock and consequent specuations therein, and to
cure the bilhoders md other creditors of the Bank
from danger of loss, it is proposed
To limit the dividends to six per cent per annum
but if they fall short in any year, the deficiency
with interest thereon be afterwards made good and
when surplus accumulates exceeding two millions,
the 10 be passed the credit Of the Treasurer
of the United States. .am ..
That the amount Of debts which it may at any time
owe shall not exceed twenty millions over and above
its deposites That the debts at any time due to the
Banks shall exceed the amount of its capital and
seventy-fve per cent thereon; and that, when the
amount Of its bills in circulation shall exceed three
shalt be made.
That it shall not deal in any thing except coin, bull
lion promissory notes, and inland bills of exchange.
That it shall take more than six per cent. upon
loans t
That it shall discount promssory notes, and pur-
chase no bill of exchange which has more than one
hundred and eighty days run, make any loan for
longer time ..,t..
That no debt shall be renewed. w 70 ~ H.s .tf.
That it shall not any time loan the United States
more than three millions Of dollars, any State
more than 100000, nor either for longer time than
one hundred days, unless authorized by law. .,.
That il shall contract debt for longer time than
one year. ...;
That il shall issue no note Of less denomination
than ten dollars. ~sm.