The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1841-09-18
institution.


Bank created by Congress for IRE District
Of Columbia as the local Legislature of
are District. Every United States Bank
created has fsa,i power To deal
in bills of exchange as well as local dis
counts. Both were trading privileges
conferred, and both were exercised by vir-
tue of the aforesaid power Of Congress,
over the whole Union. The question of
power remains unchanged, without re-
ference to the extent of privilege granted.
If this proposed Corporation is to be
rcgardet.'asa local bank of the District OF
Columbia, invested by Congress with gen.
al powers to operate over the Union, it
Is obnoxious to still stronger objections.
1t assumes that Congress may invest a 10
cal institution with general, Or national
powers.
With the sume propriety that itmay do
this in regard to bank of The District Of
Columbia, it may as to State bank. Yet
who can indulge the idea that this Go
vernmcnt can righllully, by making
State bank its fiscal agent, invest it with
the absolute and unqua flied powers con-
lerled by this bill? When come to look
at the details of the bill, they do not re-
commend it strongly to my adoption. A
brief notice of some of its provisions will
suffice.
First. 1t may justify substantially
sys EN- Of discounts of the most objec-
tionable character. 1t is to deal in bills
Of exchange drawn in one State and pay
able in another, without any restraint.
The bill of exchange may have an unlm-
tied time to run, and its renewability is no
where guarded against. 1t may, in fact,
assume the most Objectionable form of
accommodation paper. 1t is not required
to rest on any actual, real, or substantial
exchange basis; drawer in one place be-
comes the aGceptor in anothcr,and so on in
turn the .acceptor may become the draw
or, upon mutual understanding. 1t may
at the same time, indulge in mere local dis
count under the name Of bills of exchange.
A bill drawn in Philadelphia on Camden,
New Jersey; at New York on border
town in New Jersey; at Cincinnati on
Newport, Kentucky, not 10 multiply 9TH
err examples, might, for any thing in this
bill to restrain it become mere matter of
local accommodation. Cities thus rela-
lively situated would possess advantages
over cities otherwise situated, of so deci-
dcd a character as most justly to excite
dissatisfaction.
I'd. There is no limit prescribed to the
premium in the purchase of bills of en-
change; thereby correcting none of the
evils under which the community now la
bors, and operating most injuriously upon
the agricultural States, in which the inc
quality in the rates of exchange are most
severely felt. Nor are these the only con-
sequences. A resumption of specie pay
mcnts by the banks Of these States, would
be liable to indefinite postponcmcnt; for as
the operation of the agencies of the ntc-
rlor would chiefly consist in selling bills
of exchange, and the purchases could onl !
be made in specie, or in notes of banks
paying specie, the Safe banks would CT
thor have to continue with their doors
closed, or exist at the mercy of this ma
liopal monopoly of brokerage. Nor can
it be passed over without remark, that
whilst the District of Columbia is made
the sea! Of the principal bank, its citizens
are excluded from all participation in any
benefit it might afford, by Il positive pro
hibliou of the bank from all discounting
within the district.
These are some Of the objections which
prominently exist against the d, tails of the
bill; others might be urged, of much force
bat it would be Improbable to dwell upon
them: suffice it to add, that this charter is
designed to continue for twenty wears.
without competitor; that the defects to
which have alluded being founded in the
fundamental law of the Corporation. are
irrevocable; and that if the objections be
well founded, it would be over hazardous
70 pass tie bill into law.
In conclusion, take leave most respect
fully TO say, that | have felt the most anx-
lous sollsitude to meet the wishes of Con-
gress in the adoption of Fiscal Agent,
which, avoiding all constitutional obicc-
tons, should harmonise conflicting opin-
ions. Actuatcl by this feeling, ! have
been ready to yield much, in spirit of
concil aion, to the opinions of others;
and it is with great pain that now feel
to differ from Congress Sc.
cond time in the same session. At the
of this session, inclined
from choice to defer to the Legislative will
suEn,it to congress the p opriety of adj
opting Fiscal Agent which, without vio-
ating tee Constitution, would separate the
public moneys from the Executive con,
troll, perform the operations of the Trca-
sury, without being burdcnsomc to the
People, or announcement, or expensive to
the Government. 1t is deeply to be re-
yretlcd that this Department of Govern
nent cannot upon constitutional and 9TH
or grounds, concur with the Legislative