Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-07-06
.ComoresotO nal.
PROPOSED BANK OF THE UNITED
STATES.


80 which Mr.. CLAY of Kentucky is chair |
man. as read by hun in the Senate yester-
day. - -. xof,rroa so
rorcb oftbe Presidents Message as relates
- uniform currency, and suitable fiscal
agent canable Of adding increased facilities IN
,5a COLLECTION. and disbursement, and securi-
~ If tbe public revenue, have had the same
nnder consideration, and beg leave to report.
That after the most attentive and ANXIOUS
co sideration of the state of the currency ana
the finances of the Government, IN all their
interesting and important bearings, the COM |
mittee have arrived at the same conclusion
with the Secretary of the Treasury, that
sound and Just policy requires the establish
ment ola bank Of the United States with as
little delay as practicable.
The committee have neither time nor incll-
nation to enter into discussion OF the ques-
ton 9th power of Congress under the con-
stitution of the United States to re-establlsh
National Bank. After all that has been said
and written on that question during the long
period of a half Of century, nothing remains
10 he added that would be likely to shed much
new light upon it. 1t ought in the opinion OF
the committee to be regarded as settled
ouestion-settled by the appreciation. and
judgement of the people, by the authority OF
the Legislature, by the sanction OF II Execu-
tive Department of the Government, and by
the solemn adjudication of the Judiciary. II
! II he not REGARDED as a decided question,when
in the collisions and conflicts among men,
arising out of diversity of opinion and Judge
ment, is a controverted matterto be consider
ed as terminated and quiet.
Nor do the committee deem If necessary to
discuss the question of the expedlency OF es-
| tabIshinr such an institution as a bank oil
the United States On this there is even
less contrariety of opinion than on the former
question. On both, 1T is the deliberate con-
Viction, of the committee that vast majority
ofthe people of the United States concur: and
| that they are now looking with anxious solcl-
tude, TO the deliberations OF Congress, under
the confident hope that Bank OF the United
States will be established at the present ex-
traordinary. session of Congress.
Passing by therefore, those two questions,
as being unnecessary TO be further ar
gued, and asuminng what the committee,
verify believe, that a National Bank IS
indispensably necessary, they viii proceed at
once to the particular form, powers, and fac
ulties, with which it may be eXpedient to invest
such an institution. And here the committee
have no hesitation in saying that, contidlng in
| the experience of forty years, during which
the nation has enjoyed the benefit of Nation
al Bank, ond during the greater part Of which
it has realized every reasonable hope and ex-
pectatlon in the operations, ofsuch an inst NC
ton, they came to The conclusion that it would
be wisest to dismiss all experiments, and cling
to experience and assume the last charter
granted by Congress, as the basis OF a new
antics, amendments, and conditions, as have
been found necessary by actual experience.
The Secretary oftte Treasury came to a
similar conclusion; and in his report, anI the
draught of bill which accompanies it, he has
taken as his model the charter granted in
1916 On that he has suggested a great ma
ny valuable improvements, most Of which
the committee have incorporated in the
draught Of bill which they now report,to the
Senate. On this Graught they wish to offer
to the Senate some brief explanations anu OBJ
servations.
The committee have adopted Washington
City, proposed by the Secretary of the Treas
ury, as a place of location of the principal
bank. They believe the place of its location
a subordinate question; but there are many
advantages from the proximity of the Bank,
to the Government. The distribution of the
capital of the Bank among the several COM
mercial cities, In proportion TO their respective
wants and magnitude is what they naturally
desire and what viii doubtless be done. But
to guard against the exercises of an undue
government or official influence, or the impu-
lotion of any unworthy transactions the
committee have thought it expedient to de-
prye the parent bank OF all power to make any
discounts or loans whatever, except loans to
tine Government authorized by express law.
In order to ensure the command of the best
financial abilities of the country, the bill pro-
vides that the Directors, of theParent Board,
which is to consist of nine members, shall
be paid for the services by the Corporation,
and all compensation to the Directors in the
usual form of bank accommodations is utter
ly prohibited.
Thus the Directors of the bank of Wash
ington Will become a Board ofControl, super
intending the branches, supplying them with
a currency, and banking exclusively through
the agency oftheir offices of discount and de.
posits.
The capital of the bank, proposed by the
Secretary, is retained, but power is reserv-
ed TO Congress to augment it by the addition
of twenty millions making the aggregate
amount ultimately fifty millions of dollars, if
that should be found necessary.
II guard against undue expansions of the
currency by the operations of the Bank, va
rlous restrictions and securities are introduc-
ed
l. The dividends are limited to seven per
cent. per annum; and after accommodating a re-
served fund of two millions of dollars to cover
losses and contingencies, the excess beyond
that seven per cent. is to be paid into the pub
nc Treasury. And, whatever excess remains
at the end of the charter beyond the rem
5ursement of the stockholders of the capital
stock is also to be paid into the Treasury. -
If the dividends fall below seven per cent,
during any year of the charter the deficiency
Is to be made out OF the surplusses previously
paid into the Treasury The effects of this
provision is, to make a permanent and invaria-
bic seven per cent. bank stock, assuming
that the Administration of the bank is con-
Quoted with high integrity and ability.
2. The debts due to the bank are required
no. to exceed the amount of the CAPITAL stock
actually paid IN, and IS per cent thereon.
which Is greater restriction than usual.
The total amount of debts which the Bank
is authorized to contract, over and above the
ceposites,is not to exceed twenty FIVE millions
of dollars, which is also a greater restriction
that was placed upon the late bank of the Uni
ted States.
3. The publicity which is required Of the
general condition of the Bank, and the full and
complete exposure TO committees of Congress.
and to the Secretary of the Treasury. which
is amply secured, Of all the books and transac-
tons Of the Bank, including private accounts.
i "A II -