The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-08-17
HOSE.
FISCAL BANK,

which motion was adopted.
HOSE.
FISCAL BANK.
On motion of Mr.. Sergeant, the House 1e-
solved itself into Committee of The Whole ON
the state of the Union (Mr. John C. Clark, OF
New York, in the chair } on the bill to incorpor-
ate The subscribers 10 a Fiscal Bank of the
United States.
Mr., King wished the opportunity of offering
a few remarks IN explanation Of his vo& for this
bill, inasmuch as he had, at an early period of
his public life, been strongly opposed to a
National Bank,
The substance of his remarks may briefly be
stated as follows:
1, Experience had fully satisfied him that in
a country like ours, it was impossible 10 carry on
the vast mass Of trade and business with a metal
lie currency. In confirmation Of this position he
referred especially to the experiment once made
by the city OF Hamburg, and lis result in ban
nishiHg all specie from circulation, and the sub
stituting for it Of a currency of paper exclusive
ly, The trainers of the Constitution had had in
their eye a specie currency hut the necessities
OF the country had superseded such a scheme,
and had introduced a universal circulation of
paper money.
Owing to the issues of banks Incorporated by
States independent of each other, it had become
impossible to collect the taxes in a uniform msu-
ner throughout the Union; for the depreciation
OF bank issues in different degrees in different
parts Of the country prevented the currency from
being uniform. The States had no concert of
action, and could not, if they should attempt it,
effect an uniformity but their interest lay the
other way, because they made money out Of the
expansions and contraclions incidental TO the ex-
istlng state OF The currency. Being the sole
dealers in exchange, they profted by all huctua-
tons in 1t, Hence Ire argued the necessity of a
national institution as a regulator of the curren-
cy,-
If he were accused Of sanctioning a principle
which would authorize a protective tariff, and
works OF internal improvement by the General
Government, his reply was, that the establish
ment of n bank was a necessary incident 10 the
money power, which requi. ed that duties and
taxes should be uniform throughout the Union
whereas a protective tariff and internal improve
ment were not incidental 10 any one Cthe grant
ed powers in the Constitution.
To illustrate the regulating influence Of a
central institution, Mr.. K. quoted the eff ect of
the arrangement made by the country banks in
Massachusetts, with the Suffolk Bank in Boston
20 redeem. their paper, which was, TO keep their
paper at FAR. Aud Mr.. X. had once supposed
that the same thing might be effected by central
State banks in each State but he found it was
impossible, because many parts of the country
tTaded with more markets than one, and could
not make deposites in each 10 meet and redeem
their notes, which consequently suffered deprc-
citation. But a national bank would extend this
same principle 10 the hanks of the whole Union,
and would keep The paper Of solvent States banks
always at par, or nearly so.
He compared with this condition Of the eS<
changes and currency that chaotic, floating Sea
OF our fiscal affairs which had succeeded the de-
~structIon OF the bank. What must be the con
dition OF that country whose circulating medium
vas in one year 1893 millions, the following
year 40 millions, then 146 millions, then 116
millions, then 155 millions, and then LOG million ?
thus increasing, and then suddenly decreasing,
by a diff: of over30 millions in a single
year. What community on earth could long
stand such a 81 ate of thiAgs2 Mr.. X. estimated
the annual amount Of bills Of exchange at five
hundred millions; and, reckoning FIVE per cent.
premium on them, would show an annual loss
TO the People o; the United States of 25 millions
of dollars making in the six wears since the
destruction of the bank, $50 millions add to
this the losses on The currency, and the total a.
mount which the sub-Treasury scheme had cost
this nation might be set down at not less han
$50 millions.
MIR. X. adniitted that National Bank could
not wholly prevent, though it would greatly d.
minish, the fluctuations in our foreign exchar-
ges. The revulsions abroad were, for the most
part, the result Of short crops, though in some
eases they were certainly the result of over
trading: (but this latter cause had operated only
since The fall of The Bank A national Bank
WIS a great palliative of losses from the first
cause, and exerted a powerful restraint in pre-
venting those from the latter.
1t was Impossible that its place in This respect
could be supplied by any State Banks. When
exchanges were fluctuating, people had not
sufficient confidence in Stale Bank issues hence
their notes returned upon them, and all the
specie was drawn from their vaults.
Mr.. X. thought the People had su ffered enough
and long enough nor would they suffer much
longer for any man or os set of men. A sound
and uniform currency they would have, if TO
have 1t was within the compass olhnman power;
and whatever class of politicians withstood that
purpose, would find that they had run against a
rock, on which they would be utterly wrecked.
and cast in disjointed fragments, on the tide of
time. He believed that by the present Admin
istration-or if it failed, then by some other
which would take its place-this object of Civ
ing TO these United States such a currency as
they had in the halcyon days Of their CONNER
cial prosperity once enjoyed, could and would
be accomplished: without it VIZ could never
prosper for it was as necessary to a great COM
mercial People as was the circulation of the
blood 10 the natural frame.
And the bill ha ring been read bv It's title a Sd
time (the reading at large having, by unanimous
consent, been disposed with, } and the question
being on the final passage thereof
Mr., Fillmore moved the previous questi"n.
And there was a second.
And The main question was ordered TO be nnw
taken.
Mr., Snider asked the yeas and nays; which
were ordered.
And the main question, 'Shall this bill pass?"
then taken, and decided in the affirmative.
rs follows:
fEAs-12S. NAYEs-e7.
Monday, August 9. 154l.
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