The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-09-25


In the Appendix to Mr. Appleton's pamphlet, on
Banking and the Currency, is the following note IL
Illustrating one of the positions maintained in the en
tract which we published yesterday:
NOTEF.
In Congress, House Of Representatives. December 10
1920.
Mr.. Sergeant presented memorial from the Bank
OF the United States, signed l.. Cheyes, President.
from which the following is an extract:
"Under the 18th section of the act incorporatinp
the bank the bills of the bank are made re.
celvable IN all payments to the United States unless
otherwise directed by act Of Congress Under this
regulation the power of the bank make its capsl
is greatly abridged The sphere of its circulation ID
limited to those places where it is least wanted and
made to exclude those where il would be emiDently
useful while the whole currency of vast sections OF
The country is thereby frequently greatly embar-
rassed"
Jan. %, ls2S.-Mr. Hemphill presented memo
rial from the Bank of the United States Referred TO
committee, who reported, Feb g. 1929 of which
report the following are extracts:
"Under the 18th section, &c, the bills and notes
the bank payable on demand are made receivable in
all payments to the United States unless otherwise d
reced by act Of Congress.
"The question now, after full and fair experiment
on The subject is, whether this provision udicous
or otherwise
when the exchanges are unfavorabe to the South
and West, the notes of the Southern and Western
branches are taken to the north to pay the balance Of
debt, &c. &c.
"We will now proceed to enumerate some of the
evils resulting from the receipt of the notes of the
bank and its branches, in this manner and under
these circumstances.
list L greatly deranges and distresses the money
MARKET both of the places where the notes are receiy
cd, and where they are payable, &c, &c.
I'd II dmin lshes and deranges the currency of the
whole country. The bank was under the necessity
TO protect itself from danger and to avoid charging
itself TO unlimited amount with the coat If adverse
exchanges, to forbid the Offices with which the ex
changes were unfavorable, to issue their notes. Sc
&c. =.
:" Sd. It makes the necessary public burthens in
some instances doubly oppressive. The southern
banks sensbly feel the effect Of this vacillatng and
disordered state of things and their memorial Banks
OF Charleston) contains the following remarks -
they are perfectly satisfied that if the notes of each
office of the Bank ofthe United States were made re-
ceyabe only at such office that the very great bene-
fits would result the different banking institutions
in particular, and to the community in general. The
offices would then issue their notes on precisely the
same principles and in the proportions as the
State banks, and their business would be conducted
on terms OF perfect reciprocity the rates Of
would then become more uniform and moderate by an
increase OF competitors in regular exchange opern-
tons. The different moneyed institutions and the
would be relieved from the exactions
which they occasionally feel and Of which they are
always apprehensve Good will would exist toward
an institution very capable Of even now aortling
great advantages to the government; and harmony |
would be restored between il and every part Of the
The bank can never equalize exchange; the ex-
pense of exchange must be borne by the debtors in
the debtor part Of the country and every attempt
give different direction TO il will be bafiied The
southern institutions and the respectable citizens
in Charleston who have witnessed the effect produced
in practice, have informed that the business of ex
change will be improved, and the exchange ITSELF
moderated.
The following resolution is offered II Resolved, |
That the committee the Bank ofihe United States
be instructed to prepare and bring in bill agreeable
TO the above report"
No action was had on the BILL