Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1841-08-19

In the Senate chamber, in the presence and
hearing of many who at this time members OF
that body, it has been affirmed, and re-afirmed,
in speeches and reports, there made, and by
votes there recorded In popular assemblies
unhesitatingly announced it; and the last public
declaration which made, and that but short
time before the late Presidential election, refer
red to my previously expressed opinions as being
those then entertained by me. With a tul,
knowledge of the opinions thus entertained, and
never conceded, was elected by the people wee
President of the United States. By the occur
renee of contingency provided for by the Ooh-
stitution, and arising under an impressive disPen
sation of Providence, succeeded to the Pres-
dental office Before entering upon the dutes
of that office, took an oath that | would 'pre-
serve protect and defend the Constitution OF the
United States"
Entertaining the opinions alluded to- and hav-
ing taken this oath, the Senate and the country
will see that could not give my sanction 10
measure of the character described, without sur
rendering all claim to the respect OF hohoraole
men-all confidence the part OF the people
all selfrespect-al regard for moral and religious
obligations: without observance OF which no
government can be prosperous, ana no people can
be happy. 1t would be to commit CRIME wh'ch
l would not wilfully commit to gam any earihly
reward, and which would justly SUBJECT me TO the
rdcule and scorn of all virtuous men.
| deem it entirely unnecessary at this time to
enter upon the reasons which have brought my
mind to the convictions feel and entertain on
this subject. They have over and over again
been repeated. If some of those who have pre-
ceded me in this high office have entertained and
avowed different opinions, yield all confidence
that their convictions were sincere. l clam on
ly have the same measure melted out to myself
Without going further into the argument, will
say, that, in looking to the powers OF this GOV
eminent to collect safely keep and dsburse the
public revenue and incldently regulate the COM
merce and exchanges, have no been able to sat
isfy myself that the establishment, by this Coy
ernment of bank of discount, in the ordinary
acceptation of that term was necessary means,
or demanded by propriety, TO execute those
powers. What can the local discounts OF a bank
have to do with the collection safe keeping, and
discussing of the revenue? ""
So far as the mere discountin5 OF paper is con-
cerned, it is quite immaterial to this question,
whether the discount is obtained at State Bank
or a U. S. Bank They are both equally local
both beginning and both ending in local accom-
mediation What influence have local discounts,
granted by any form of banks, in the regulating
of the currency and the exchanges Let the
history Of the late United States Bank aid us in
answering this inquiry.
For several years after the establishment OF
that institution, it dealt almost exclusively in To-
cal discounts, and during that period The county
quences anticipated from its incorporation.
uniform currency was not provided, exchanges
were not regulated, and little or nothing was ad-
ded to the general circulation; and in 1920 Its
embarrassment had become great, that the
directors petitoned Congress to repeal that artl-
Gle of the charter which made its notes receiVa-
BILE every where, in payment of public dues.
1t had, up to that period, dealt to but very
small extent in exchanges, either foreign or do
mestic; and late 1925 its operations in that
line amounted to little more than 81 000,0
per annum; very rapid Augmentation soon after
occurred, and in 1888, its dealings in the ex-
changes amounted to upwards of Sl00,O0O,0 OO
including the sales Of its own drafts and all these
immense transactions were effected without the
employment of extraordinary means. The cur
rency of the country became sound, and the ne
gotiations in the exchanges were carried on al
the lowest possible rates.
The circulation was increased to than S22 0OOOoO
and the of the bank were regarded as equal TO specie
all over country thus showing; almost cohcuslVely,
that their capacity to deal IN exchanges ana NOT IN
focal discounts, which furnished these iacl ana auV-
tapes NAV be remembered that outstanding the
immense transactions of the bank, in the purchase OF eA
change, the losses sustained were merely nominal WINE IN
the tmeof discounts, the suspended debt was ehoos'
and found disastrous to the bank and the country It's
power Of local discount has in fact, proved to be fruitful
of avoritism and corrupo aiike destructive 10
public morals and tothc general veal. r..
The capital invested in banks of discount in the United
atates created by the States, at this time exceeds 5OoOo
900 and if the dseounting local paper could have pro-
uced any beneficial effects, the United States ought to pos
sess the soundes currency in the world but the reverse Is
lamentaby the fact .
IL the measure now under consideration, of tine objection
able character 10 which have alluded! II IS clearly SO,
unless by the 10Th fundamental article OF te ll section II
is made otherwise That article is in the following words
The directors of said corporation shall establish com
petent office discount and deposit III any STATE III "lich
thousand shares shall have been subscribed or may pc
held whenever, upon application OF 'he Legislature oi suth
State Congress may law require the same ana le
said directors establish more competent OF
fees of discount and deposte in any Territory or District OF
I1pit md in
State and established the said Office or olces sall
be only Withdrawn removed by the said directors, pr0r
the expiration OF this CHATTER WIN the previous assent o
Congress- 49,. a. -, -
first session Of the Legislature thereof held after the pas
SAGE of this act by resolutions other usual legislative pro-
ceeding Internationally assent on dissent to the establish
such Office offices within IT. such assent oil te
said State shall be thereafter presumed ana provided new
ertheless That whenever it shall become necessary and
proper carry into execution any Of Inc poMers grant
ed bv the Constitution, establish office offices IN any
of the States whatever and the establishment thereOl snail
be directed by law ii shall be the duty Of the SAID directors
establish such office or offices accordingly"
by this clause the directors are invested
with the fullest power establish branch i'll any state
which has yielded its assent and having once established
such branch, il shall afterwards be wlthdra"i except
b, ordo Congress-
sanction of actually expressed assent propided i'll
spect to any which shall not at the first sessisn Of the
Legislature thereof held after the passage of this act by
resolution other usual legislative proceeding, uncondon
Offices within it, such assent of said State shall be thereai
Ter presumed"
The dissent TO be expressed Internationally
the fir session of the Legislature by some formal legs
latve and if expressed its assent is to be impll
ed directors therefore invested with power, ut
time thereafter they may please TO establish branch
which cannot afterwards be Wltndawn, except by
solve Of Congress.
No matter what may be the which may operate