Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1841-08-28

than $7,000,OO 0 per annunl. A very rapid
augme ntatlon soon after occurred, and in
1928 its dealings in the exchanges amount.
ed to upwards of 800, 000, 900, including
the sales of its own drafts; and all these
immense transactions were effected without
the employment of extraordinary means. The
currency OF the country became sound, and the
negotiations in the exchanges were carried on
at the lowest possible rates. The circulation
was increased to more than 1872 o 200, and
the notes OF the bank were regarded as equal
to specie all over the country thus showing,
almost conclnslvely, that it was the capacity
to deal IN exchanges, and not in local dis
counts, which furnished these facilities and
advantages. 1t may be remarked, too, that
Notwithstanding the immense transactions Of
the bank in the purchase of exchange, the
losses sustained were merely nominal while
in the line Of discounts the suspended debt
was enormous, and proved most disastrous to
the bank and the country. Its power Of local
discount has, in fact, proved to be a fruitful
source OF favorltisn and corruption, alike de-
s%trlctive to the public morals and to the gene
raj veal.
The capital invested in banks of discount
in the United States, created by the States, at
this time exceeds $$s335O,OOO, 900; and if the
discounting of local paper could have produce
ed any beneficial effects, the United States
ought to possess the soundest currency in the
world. But the reverse is lamentably the
fact.
Us the measure, now under consideration, Of
the Objectionable character to which | have
alluded? 1t is clearly SO, unless by the 10th
fundamental article of the 11th section it ia
made otherwise. That article is in the follow
ing words:
"Th directors of the said corporation shall
establish one competent office OF discount and
tleposlte in any State in which two thousand
shares shall have been subscribed, or may be
held, whenever, upon application of the legis-
lature of such State, Congress may, by law,
require the same. And the said directors may
also establish one or more competent Offices
of discount and deposite in any Territory or
District of the United States, and in any State,
with the assent of such State and when cs-
tablished, the said Office or Offices shall be only
withdrawn or removed by the said directors,
prior to tile expiration Of this charter, with the
previous assent of Congress: Provided, /.
respect to any State which shall not, at the
first session OF the legislature thereof held al
ter the passage of this act, by resolution and
or other usual Legislative proceeding, uncon-
ditionally assent or dissent TO the establish
ment of such Office or offices within it, such
assent of the said State shall be thereafter
presumed: And prorided nevertheless, That
whenever it shall become necessary and pro-
per, for carrying into execution aay Of the
powers grantedby the constitution, to establish
an office or offices in any Of the States what
ever, and the establishment thereof shall be
directed by law, it shall be the duty of the
said directors to establish such Office or offices
accordingly"
1t will be seen that by this clause the d.
rectors are invested with the fullest power to
establish n branch in any Stale which hrs
vie ded its assent; and, having once establish
ed such a branch, it shall not afterwards be
withdrawn except by order of Congress. Surh
assent is to be implied, andto have the force and
sanction OF an actually expressed assent, "pro.
vided, in respect to any State which shall not,
at The first session OF the legislature thereof
held after the passage of this act, by resoiu-
tion, or other usuai Legislative proceeding, un-
condnionaUy assent or dissent to the establish
ment of such Office Or Offices within il, such
assent of the said State shall be thereafter
presumed" The assent OF dissent is TO be
expressed uncondiionaHb at the first session #
The Legislature, By some formal Legislative act
and, if not SO expressed, its assent is to be
implied, and the directors are thereupon in
vested with power, at such time thereafter as
they may please, to establish, which cannot
afterwards be withdrawn, except b. resolve of
Congress. No matter what may be the cause
which may operate with the legislature, which
either prevents it from speaking, or addresses
itself to its wisdom, to induce delay it's assent
is to be implied. This iron rule is to give way
to no circumstances-it is unbending and in
flexible. 1t is the language Of the master to
the yassal.
An unconditional answer is claimed forth
with and delay, postponement, or incapacity
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 of the people, that such
a question was to come up. The Rcpresen-
tatives may desire a submission of the ques-
ton to their constituents, preparatory to final
action upon it but this high privilege is de-
MED. Whatever may be the motives and
views entertained by the Representatives of
the people to induce delay, their assent shall
be Internationally expressed at their first ses-
sion after the passage of the bill into a law.
They may by formal resolution declare the
question of assent or dissent to be undecided
and postponed, and yet, in opposition to their
express declarations to the contrary, their as
sent is to be implied. Cases innumerable
might be cited to manifest the irrationality Of
such an inference. Let one or two in addition
suffice.
The popular branch Of the Legislature may
express its dissent by an unanimous vote, and
its resolution may be defeated by a tie vote in
the Senate: and yet the assent is to be impli-
ed. Both branches of the legislature may
concur in a resolution of decided dissent, and
yet the Governor may exert the peto power
conferred on him by the State constitution,
and their legislative action be defeated and
yet the assent of the Legislative authority is
implied, and the directors of this contemplated
institution authorised to establish a branch or
branches in such State whenever they may
find it conducive to the interest of the stock
holders to do so; and having once established
it, they can, under no circumstances, withdraw
it, except by act of Congress. The State may
afterwards protest against such unjust infer
ence, but its authority is gone. Its assent is
implied by its failure or inability to act at its
first session, and its voice can never alter
wards be heard. To differences SO VIOLENT, and,
as they seem to me, irrational, | cannot yield
my consent. No court Of justice would or
could sanction them, without reversing all
that is established in judicial proceeding by
introducing Prescriptions at variance with
fact. and differences at the expense of reason.
A state in a condition of duresse would be pre-
suned to speak, as an Individual, manacled and
in prison, might be presumed to be in the en-
joyment of freedom. Far better to say to the
States, boldly and frankly-Congress wills,
and submission is demanded.
II nav hn said that the directors NAV not