The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-12
Communications.
ron THE MApIsoNlAN.
ARIsTIDEs TO THE wHIGs-NO. s.


The retiring Cabinet and The Wing Convention Of
Senators and Representatives have chosen TO place
their objections 10 the President Ty-
Ter on the ground Of the second Veto Of bill, which
they assume was necessary for the safe-keeping
and disbu of the revenue, and called for by
public opinion to redeem the currency from the degad-
ed condition into which il thrown by the visona
nv experiments of the two preceding Administrations
The question arises, this BILL as il passed through
the two Houses of Congress, adequate to the accom-
pshment Of these purpose An institution capable
Of producing such results all must admit to be highly
| important as well TO the Government to the gene.
raj prosperity Of the country: maintain the negative
Of this proposition and shall undertake TO show that
the institution would have fallen far short of the OBJ
jects contemplated II would not have supplied cir
culating medium of equal value throughout the Union
equivalent TO the wants and business Of
the country il would have operated partially il would
have utterly failed to equalize exchanges beyond the
region Of the commercial cities, and the plantation
| States and interior merchants would have been left
precisely they now at the mercy Of the money
| capitalists the seaboard
| have in my preceding number, adverted to the
probability, if not absolute certainty that the stock,
subject to private subscriptions, amounting TO two
thirds of the capital Of the bank would have been tax
| en- by the commercial cities of our own country or
transferred TO foreign capitalists. Such would
doubtedly have been the result under the existing de-
rangement Of the currency These private stockhold
ers would have chosen six out of the nine directors
constituting the primary board at the city Of Wash
ington. What would have prevented these six direct
ors being majority of the board from fixing any rate
L 81 IA ha
country in the same manner if they were private
partnership Of brokers, having exchange bank in
New York and agencies in the several States buy
| and sell exchange, foreign and domesticl Nothing
whatever. They would have controlled the Govern
ment directors, and the governing principle with them
would according to all human action, have been the
interests of the stockholders 1t has been said that the
| annual dividends being limited to per cent.
would Of itself have regulated the premium domes
tic bills and reduce il to a moderate standard. But
this restriction is not according the BILL operate
| on the stockholders until they shall have realized
nett surplus and above that limit Of an amount
exceeding two millions Of dollars and after such
surplus shall have accumulated the of profits
accrung thereafter made payable to the public
Treasury 1t is clear therefore, that at no period will
the limitation Of per cent the annual divi-
dends operate to protect the purchasers vendors Of
exchange from any e1acion, however esorbtant,
which might be fixed from time to time, by the six d.
rectors representing the private stockholders.
| The rates Of exchange throughout the Union
now, and have been for some years past, regulated
at New York, the great commercial emporium and
must continue to be regulated at that point until
controlled by some institution created by the Ma
tional Legislature with the capacity to furnish
uniform currency, and renting medium based
system of equality in all the States of the Con-
federacy. In most ofthe Southern and Middle States
| the premium good bills drawn on New York ranges
from seven to twenty-five per cent. Would this Fs-
cal Corporation, if it had gone into operation have
changed modified this state Of things2 Assuredly
not. The consolidation of twenty millions Of
change capital proposed in the BILL would have af
orded relief to the purchasers of exchange in those
| States who now laboring under suspension Of
specie payments, would it have given any aid to
the State Banks, by means of which they might have
resumed the redemption of their liabilities in specie
/ The effect Of the system would have been to place
these banks in servle condition than they are
at this time, and make them the instruments carry
on the operations of this corporation. The agents
ablshed deal in exchanges in the several States
required by the bill to have dollar of specie in
their vaults at the commencement of their business.
No division of the capital stock is required to be made
among these agencies, but they simply to buy and
sell exchanges the credit of the parent Bank at
Washington. Thus agency in any of the
Western States at Louisville, in Kentucky, for e.
ample might open an office with nothing more than
trunk of blank exchanges, signed by the President Of
the Corporation and post notes, which would at once
| Il -, 49,
srous make remittances to the Northern and East
ern cities in payment of their debts. Such an agency
so organized, might in the course of one year. sell
bills OF exchange or post notes to amount exceed
ing several millions of dollars while they would not
purchase bills on the cities to the amour, of
twenty thousand dollars at the same place. Every ex-
perienced merchant must be well that but few i'm
dviduals in the valley Of theMissssppi possess funds
in any of the Northern cities which they desire 10
draw bill of exchange that the whole or nearly
the whole of the transactions of these agencies Gin
northern drecton) would he confined to he sale of re-
mlttances by means of their authority to draw, at
any sight other agents in the commercial cities |
will ask how these bills TO be procured by South
ern and Western merchants, if the State Banks in
| Kentucky and elsewhere in the South and West are
enabled to redeem their in coin on demand
They could not be purchased with the notes of a nom
specie paying bank and therefore, in the present state
of things, the Institution would create no change in
favor of that portion of the country But will sup
pose that the State Banks from Ptsburg to New Or
leans resume specie payments how long could they
maintain such payments against the power of these
agencies II their notes should be taken by the agent
in payment of Northern exchanges the amount ncces-
sary TO supply the wants Of the mercantile classes