Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1841-07-01
CONGRESS.
Proposed Bank of the United states.

which Mr. Clay, of Kentucky, is Chairman, as
read by him in the Senate Yesterday
The committee to which was referred so much
ofthe Presidents Message as relates to a uniform
currency, and suitable fiscal agent capable of
adding increased facilities in the COLLECTION, and
disbursement and security of the public revenue ,
have had the same under consideration, and beg
leave to report:
That, after the most attentive and anxious con-
sideratIon of the state of the currency, and the
finances of the Government in all their interest
ing and important bearings, the committee have
arrived at the same conclusion with the Sccreta-
ry of the Treasury, that sound and just policy
requires the establishment of Bank of the Uni
ted States with as little delay practicable.
The committee have neither time nor inciina-
ton to enter into discussion of the question of
the power of Congress, under the CONSTITUTION of
the United States, 10 establish National Bank.
After all that has been said and written that
question during the long period of halfa century,
nothing remains to be added that would be likely
to shed much new light upon it. il ought in the
opinion of the committee, to be regarded as set
tied question-settled by the judgment ana APP
probation of the People, by the authority of the
! Legislature, by the sanction Of the Executive
Department of the Government and by the SOL
elnn adjudication Of the judiciary. If be not
re garded as a decided question, when, IN the col
lslons and conflicts among men, arising out Of d.
versity of opinion and Judgment is controvert-
ed matter to be considered as terminated and chi
eted?
Nor do the committee deem it necessary to dis
cuss the expedieney of Establishing such in
stitnton as a Bank ofthe United States. On this
there is even less contrariety of opinion than on
the former question. On both it is the delber
ate conviction Of the committee that vast ma
ority of the people of the United States concur +;
and they are now looking, with anxious solicit
tude, to the deliberations of Congress, under the
confident hope that Bank of The United States
will be established at the present extraordinary
session of Congress.
Passing by therefore, those two questions as
being unnecessary to be further argued and
suming what .he committee verify believe, that a
National Bank is indispensaby necessary, they
will proceed at once; to the particular form, pow
ers and faculties with which it may be expedent
to invest such an institution. And here the COM
mittee have no hesitation in saying that, conf
ding in the experience of forty years, during
which the nation has enjoyed the benefit of Ma
tional Bank, and during the greater part of which
Ii has realized every reasonable hope and expec-
tation in the operations Of such institution
they came to the conclusion that it would be wi
sest to dismiss ali experiments, and to cling to ex
perence and assume the last charter granted by
| Congress as the basis OF new bank, engrattpg
upon it such restrictions, guarantees, amend
ments, and conditions, as have been found neces-
sarv By actual experience.
| The Secretary of the Treasury came to n simi-
lar CONCLUSION and in his report, and the drauglt
Of bill which accompanies it, he has taken as his
model the charter granted by Congress in 1876.
/ On that he has suggested a great many valuable
Improvements, most of which the commitle have
incorporated in the draught of bill which they
now report to the Senate. On this dfaught they
| wish to offer to the Senate some brief expana-
tons and observations.
The committee have adopted Washington city,
| proposed by the Secretary Of the Treasury, as
| the place of location of the principal bank. They
believe the place of its location is subordinate
| question but there many advantages from
the proximity of the Bank to the Government
The distribution of the capital of the Bank among
the several commercial cities, in proportion to
their respective wants and magnitude, is what
they naturally desire, and what will doubtless be
done. Eut to guard against the exercise Of any
undue Government official influence, or the
imputat,on of any unworthy transactions, the
committee have thought it expedcnt to deprive
the parent Bank of all power to make any dis
counts or loans whatever, except loans to Gov
ernment authorised By express law. In order to
ensure the command of the hest financial abilities
of the country, the bill provides that the Direct
ors of the Parent Board, which is to consist Of
nine members, shall be paid for their services by
the Corporation, and all compensation to the Dl-
rectors, in the usual form OF bank accolnmoda-
tions is utterly prohibited.
Thus the Directors of the Bank at Washing
ton will become Board of Control, superintend
ing the branches, supplying them with currcn-
cy, and banking exclusively through the agency
| of their Offices Of discount and dcposite.
The capital ofthe Bank, proposed by the Sec
rotary, is retained but power is reserved to
Congress to augment it by the addition oftwenty
millions, making the aggregate amount Ultimate
ly fifty millions of dollars, if that should be found
to be necessary.
To guard against undue expansion of the cur
rency by the operations Of the Bank, various re-
strictions and securities are introduced.
!. The dividends are limited to seven per cent.
per annum, and, after accommodating reserved
fund of two millions Of dollars, to cover losses
and contingencies, the excess beyond that seven
per cent is to be paid into the public Treasury.
And, whatever excess remains at the end Of the
charter, beyond the reimbursement to the stock
holders of the capital stock, is also to be paid in
to the Treasury. If the dividends fall below sew
en- per cent during any year Of the charter, the
deficiency is to be made good ont of the surpusses
previously paid into the Treasury. The effect of
this provision is, to make permanent and nva-
ruble seven per cent. Bank. stock, assuming that
the administration of the Bank is conducted with
integrity and ability.
2. The debts due to the Bank are required not
to exceed the amount Of the capital stock actual
| ly paid in, and rs 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 depos-
| ties, is not tn exceed twenty-five millions ofdol-
lars, which is also greater restriction than was
placed upon the Bank Of the United States.
| B. The publicity which is required ofthe gen.
eral condition of the Bank, and the full and COM
plcte exposure to committees of Congress, and to
l the Secretarv oft the Urea which ia amDiV