The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-08-31
Friday, eth August, 1871.
FOR THE MADIsoNIAN
THE FISCAL CORPORATION.

The FISCAL CORPORATIONS
Ma. ALLEN From brief consideration of the
vexed topic recently referred in your columns and
a cursory glance at the principles of the newly pro
posed Fiscal Corporation, il appears obnoxious to
supeable OF the reserved rights OF
the sovereign States. Bank of discount in disguise
In fact continuation ofthat obtIusve spirit central
ism and consoldation-coeval with the Constitution
which has with unceasIng hostility, pressed upon the
primary principles of the Federative system.
Ii the President objected To the unconstitutonay
Of the last bill and, particularly. against Federal
Bank to make local discounts, the new projection
the less Objectionable its provisions clear
susceptible Of The application to the worst and most
dangerous of operations.
In the first section the bill prescrbes that (of the
capital Of twenty-one milons) 10 900 shares
millions OF dollars, :" shall be subscribed for by the
United States; and the residue may be subscribed
and paid for by individuals, companies, corporations
States and that the right is reserved TO augment
the capital of the Corporation 10 thirty five millions of
dollars"
In the sixth section ii is provided that ifhe fourteen
millions reserved for individuals, &c, shall be taken
prior the first of January next, (which will doubt
less be the case and . the deficiency do exceed
onethrd !" the residue shall be subscribed by the Sc
cretary OF the Treasury. So that the United States
will be in for majority of the capital whilst WELDING
only one third Of the poweras appears in the eighth
section.
The ninth section provides that as soon as ten dol
lars each share shall have been received on
count Of subscriptions by individuals, &C. the drec
cal Cooperation will be vested in them upon the pay
ment Of less than one Million whilst Uncle Sam viii
be fastened for more than eleven millions of dollars
with charge for interest all his newphews for and
during fifteen years al the least, with but slight
rance for reinforcement.
By the eleventh section, lat rule the Corporation
is prohibited from dealing in any thing except To-
reign bills of exchange, gold and silver" can
not purchase any public stock whatever"-but this in
hibiion may be- and doubtless will be, avoided under
the 10Th rule by which the taking of such stock
curly is authorized.
The 18th rule allows of bills obligatory, and Of
credit, under seal, in not less than $1,000
for longer than year Thus egalizing the pernicl
practice OF raising means post notes bonds
time, which has proved destructive to other instu
tons.
The 10th rule empowers the directors to employ
any agent agents. any bank or banks in any
State Territory for ransacting the business OF the
Corporation, (wllhout the assent OF such State or
Territory, in the face of the recent veo)-wth pro-
viso that the said Corporation, agent or bank
employed by it, shall not discount any promissory
with the moneys Of the Corporation But il does not
prohibit the discountng Of bills of exchange nor even
of notes, with other moneys, particular funds =
thus presenting strong inducements TO collision and
fraud.
The directors to be paid for their services, but
they not prohibited from borrowing the of
the Corporations by dealing in exchanges practice
fraughi with frghtiul evils. But provision is made
for the payment Compensation of agents either di
The aforegoing are but part of The prominent OBJ
jections apparent upon cuisory view OF the :" New
Projection the operations OF which would obviously
TO the most mischeyous practices in dIscountng
and kiting, whether local" OF otherwise as instead
of accommodations on reciprocal endorsements, by
pothecalions at home, the needy adven,urer would
arrange with correspondents in different States to di
and redraw upon each other; and unless the bills be
drawn at sight, pay able demand or presentation
the discount would be taken, for the Intermediate time
together with the exchange which would open door
To usurious extorton aud most ruinous excuses The
consequences OF such course will readily TO the
practical merchant and excbanger--apd particularly
those of the Southern States who have witnessed
the devastating and parayzng operations of the khng
system, in bygone years.
II is expected by the advocates of the proposed
projection" that its dealings would be limited to
drafts at sight, payable presentation; and, if
not, the taking OF discount, whether bills of
change or promissory notes. would, in substance, be
the same-it would, in effect, be borrowing money
local discount. And would such projection re-
ceive the sanction Of the Chief Magistrate We
need not pause for reply as, juds ing from the past
we might confidently anticipate penemptory