Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-08-24

those powers. What can the local dis
counts Of the bank have 10 do with the
collecting, safe-keeping aud disbursing
Of the reVenuei So far as the mere dis.
counting Of paper iS concerned, it is quite
Iimmaterial TO this question whether the
discount is obtained at a State Bank or a
United States Bank. They are both be,
ginning aud both ending ia local accom-
modatIon. What influence have local dis
counts, granted by any form of bank,
in the regulating Of The currency and the
exchanges! Let the history Of the Uni
ted States Bank aid US in answering this
inquiry.
For several years after the establishment
of that institution, it dealt almost exclu-
sively in local discounts, aud during that
period the country was, for the most part,
disappointed in the consequences antici-
pated from its incorporation. A uniform
currency was not provided, exchanges
we're not regulated; and little or nothing
was added 10 the general circulation, and
in 1920 its embarrassmeniS had become
so great, that the directors petitionad Con.
gress TO repeal that article Of the charter
which made its notes receivable every
where in payment Of public dues. II had
dealt to but very small extentin exchan-
ges, either foreign or domestic, and as
late as 1923 its operations in that line a.
mounted to little more than 81 900, 900
per annum. A very rapid augmentation
soon after occurred, and in 1888 its deal
ingsin exchanges amounted to upwards of
$780, 900 including the sales of its
drafts; and all these immense transactions
were effected without the employment of
extraordinary means. The currency of
the country became sound, and the nego-
tiatiOns in exchanges were carried on in
the lowest possible rates. The circula-
tionwas increased TO more than S22 2,OO0.-
900, aud the notes Of the bank were con-
sidered as equal to specie all over the
country, thus showing almost conclusive
ly that it was the capacity TO deal in OK.
changes, and not in local discounts, which
furnished these facilities and advantages.
1t may be remarked, too, that notwithstand-
ing the immense transactions of the bank
in the purchase Of exchange, the losses
sustained were merely nominal; while in
the line Of discounts the suspende d debt
was enormous and proved most disastrous
to the bank aud the country. Its power oflo-
cal discount has in fact proved to be a fruit.
ful source Of faVoritism and corruption A.
like destructive to the public morals and
to the general veal.
The capital invested in banks of dis
count in the United States, created by
States, at this time exceeds three hundred
and fifty millions Of dollars, and if the dis
counting Of local paper could have produ.
ced any beneficial effects, the U. States
ought to possess the soundest currency in
the world; bu; the reverse is vsIilably the
fact.
Is The measure now under considera-
;ion Of the Objectionable character to
which have alluded? 1t is clearly so,un-
less by the 10th fundamental article of
the l lth section it is made Otherwise
That article is in the following words:
"The Directors of said Corporation shall
establish one competent office of discount
and depOsite in any state in which 1000
shares shall have been subscribed, or NAV
be held, whenever, upon application of
the Legislature ofsuch State, Congress
may by law require the same. And The
said directors may also establish one or
more competent Offices Of discount aud
deposite in any Territory or district of the
U. 5. and IN any State, with The assent
Of that State; and when established, the
said office or offices shall only be with.
drawn or removed by the said directors,
prior 10 the expiration of this charter, with |
the previous assent of Congress; ProVi-
ded, in respect to the State which shall
not at the first session Of The Legislature
thereof, held after the passage Of this act,
by resolution or other usual legislative
proceeding, unconditionaly assent or
dissent TO the establishment of such Office
or offices within it, such assent of the
said State shall thereafter be presumed.
And provided nevertheless that whenever
1t shall become necessary and proper for
carrying into execution any Ofthe powers
granted by the Constitution, TO establish
an Office or Offices in any of the States
whatever, and the establishment thereof
shall be directed by law, il shall be the
duty Of said directors TO establish sach
>fiice or offices accordingly"
1t will be seen that by this clause the
directors are invested with the fullest
power TO establish branch in any State
which haS yielded its assent, and having
'nco established such branch il shall not I
afterwards be withdrawn except bv order
If Congress. Such assent iS to be i'm.
'Iied, and to have the force and sanction
If an actually expressed assent, 'Provi. {
red in respect 10 any State which sb,ll ,