, 1841-09-25

merateing other features which are equally
distinctive and characteristic, clearly show
that i, cannot be regarded as other than a
Bank of the United States, with powers
seemingly more limited than have hereto
fore been granted to such an institution. II
opela tes per Sc over the Union, by virtue OF
the unalded. and, in my view, assumed au-
thority of Congress as a National Legisla-
ture. as d%istinguishable from a bank created
by Congress for the District OF Columbia, as
the local Legislature Of the District. Eve
nv United States Bank heretofore created has
had power to deal in bills Of exchange, as
well as in local discounts. Both were trad
ing privileges conferred, and both exercised,
by virtue Of the aforesaid power Of Con-
gress, over the whole Union. The question
of power remains unchanged, without refer
ence to the extent Of privilege granted. Ii
this proposed corporation is 10 be regarded as
a local bank Of the District of Columbia, IN
vested by Congress with general powers to
operate over the Union, it is obnoxious to
still stronger objections. 1t assumes that
Congress may invest a local institution with
general, or national power. With the same
propriety that it may do this in regard TO q
bank of the Distict Of Columbia, it may as
to a State bank. Yet who can indulge the
idea that this Government can rlghtiully, by
making 4 State bank its fiscal agent, invest
it with the absolute and unqualified powers
conferred by this bill, When come to look
at the details Of the bill, they do not recon-.
mend it strongly TO my adoption. A brief
notice of some Of its provisions will suffice.
First. 1t may Justify substantially a sys-
tenn Of discounts Of the most objectIonal
character. 1t is to deal in bills Of cxchage
drawn in one State and payable in another,
wi,hou, any restraint. The bill of ex-
change NAV have an unlimited time to rum,
and its renewability is no where guarded
against. IL NAV, in fact, assume the most
Objectionable form Of accommodation paper.
Ii is not required 10 rest on any actual, real,
or substantial exchange basis; a drawer IN
one place becomes the acceptor in another,
and so on in turn the acceptor may become
the drawer. upon 4 mutual Understanding
1t NAV. at the same time, indulge IN mere To-
cal discounts under the name OF bills OF ex-
change. a bill drawn ut Philadelphia on
Camden. New Jersey; at New York on n
border town in New Jersey; at CINCINNATI
on Newport. Kentucky. not TO multiply 9TH
err examples, might, for any thing in this bill
10 restrain it. become 4 mere matter OF local
accommodation. Cities thus relatively STU
a,ed would possess advantages over cities
otherwise SITUATED, OF so decided 4 character
as most Justly to excite dissatisfaction.
end. There is no limit prescribed TO the
premium in the purchase of bills OF ex-
change: thereby correcting none Of the evils
under which the community now labors, and
operating mos, injuriously upon the agrlcul-
tural States. in which the inequality in The
rates OF exchange are most severely felt
Nor are these the only consequences. A re-
sumption of specie payments by the hunks
Of these States. would be liable TO indefinite
pos,ponement; for as the operation oil the
agencies Of the interior would chiefly con-
sis, in settling bills Of exchange, and Tie
purchases could only be made in specie, or
in notes of banks paving specie. the State
banks would either have to continue with
their doors closed. or exist at the mercy OF
this national monopoly Of brokerage. Nor
can il be passed over without remark, that
whilst the District of Columbia is made the
seat Of the principal bank, its citizens are
excluded from all participation in any benefit
il might afford, by Il positive prohibition oil
the bank from all discounting within the Dis
trict.
These are some OF the objections which
prominently exist against the details Of the
bill; others might be urged, Of much force,
but it would be Improbable TO dwell upon
them: suffice it to add, that this charter is
designed 10 continue for twenty years, with
out a competitor; that the defects TO which
| have alluded being founded in the funda'
mental law OF the Corporation, are irrevoca'
BILE; and that il the objections be well foun.
ded. it would be over hazardous 10 pass the
bill into 4 law.
In conclusion, | take leave most respect
fully TO say, that | nave felt the most anx'
ious solicitude TO meet the wishes Of Con.
gress in the adoption Of a Fiscal Agent
which, avoiding all constitutional objections
should harmonise conflicting opinions. Ac'
tuated by this feeling, ] have been ready
TO yield much, in n spirit Of Cancellation, to
the opinions Of others; and it is with great
pain that ! now feel compelled to differ from
Congress a second time in the same season.
AT the Commencement of this session, in.
cIined from choice to differ to the legislative
will, | submitted to Congress the propriety
IL l.-z.o Lt;,o,l Aoant vvh,ch w,tho,,