The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1841-08-26

prscaded me in this high Office have entertain
cd and avOwed different opinions, yield all
confluence that heir Convictions were SINCERE:
claim only to have the sams measure me'rd
out to myself Without goIug further into ,hs
argument, will say that, IN looking To tho
powers Of this GoVernmHut to collect, Satr'V
keep, and dsburse the public revenue, "rd m
cidsn,aly 10 regulate the commerce and rI-
changer, have moi hsea able TO satisfy nv
seIf that tho establishment by the governrnnt
of discounF 10 the ordinsry acceptanon Of that
term. was a oe ecessary mems, or ono deman.
Ged by proprieiy.s In execute thoss powers.
What eAn tho local discounts OC the bank bDve
to do with tho collecting, safe keeping, and
d,sburslug Of the reVcnue7 So lar ~ the aiere
di"counilng Of paper Is concerned, tits quite
'mmaterlal to thu" question whether the dis
cnunl lie obtained OF a State hank or United
States Bank, They are both equally mcal-
10th beginning and both ending IN local &C.
commndation. What influence hhvc local DIS.
counts, granted b, any form Of bank. IN the
regulating Of the currency aud the exchanged
Let tho history OF the late United 8 ateS Bank
aid uS in answering this e"q'ry.
For several yssrs after tho establishment nj
that institution, II dealt almost exclusively In
local discounts; and during that period The
country war, for tho nnst pat, disappointed
in the consequences anticipated from ne l"rof-
puratinn. A uniform currrncy was not p'oVl-
ded, exchanges we're not regulated, and liile
or nohns vac added 10 the 2cn"'sI ciIcula-
lion; and N 1929 ne emharraSsments had hH-
come 90 great, that The directors petisloned
Congress to repssI thai article Of the cha'!er
AIN uvuIn a
in paymen, Of The pubic dues. bad, up 10
that period, dealt 10 but smai' extent III tx
changes. eilher foreign nr domestic, end .ae
late as 1923 lis opcra,ions IN that line amount
ed to lutte moro than seven millions Of dol
lara per annum. A very rapid augmentation
soon Afier occurred and in 1888 its dealings
in exchanges snouned 10 upwards OF one hum
dred million. OF dollars, including the 'ales Of
na o~ n drafts; and all these immense ,rsnrar-
tiOns were effected without The employment oi
exrraordinary mean.. The currency of the
country became sound, aud the neRociannns
in the exchanges were carried on al The Iowesl
| possible rates The rirruAuon wsA lncusaaed
| n more than "a, ,nOO, 900, and the notes of the
bank we're regarded sa equal TO specie oil over
! the country; thus showing almost exclusively,
that it was the capacity TO deal in exchanges,
| and not ir local discounts. which furnished
these facilities aud advantages II mhy be
| remarked, too, thst n,wilnsinndinR tho i'm
| menae irRDssrtlona oi the hank in the purchase
| Of exchange. the lOsseS sustained we're merely
nominal, white IN the llne OF discounts the
suspended debt was enormous, and proved
! most dRasttous 10 the bank and county. lis
pnwer Of local discouht has. m fact, proved
| 10 be fruitful source OF fAvotiteIsrn and cor.
ruption, alike destructive 10 the public morals
aud the general veal
The capital invested IN hanks Of dscounl
in the United States. created hv hs States, at
this time, exceeds $50 200, 900 of dollars;
and il the dl.counting of local paper could
have producsd sny bene6cIal effects, The Uni>
| ted States ought 10 posstsS The soGudes, cur =
reucy in the world; bu, the reverse is lament
ably the fact
Is the measure now under consideration Of
the objections BILE character TO which lhave al
ludedl Il is clearly so, unless by the l6'h fun
damental article Of the 1lIh section il is made
otherwise. That article 10 in the following
words:
"Ths directors Of the said corporation sha
establish one competent Office Of discount and
deposite in auv State in which two thousand
shares shall have been subscribed, or may be
held, whenever, upon the application, Of the
Legislature Of such Stale, Congress may by
law require the same. Ard the said directors
may establish one or more competent Offices
Of discount and depoSIle in sny Territory OIL
District ofths United Slater, aud in any Slate
with the assent Of such State. and when es'
iablished, the said office or ofices shall be on.
ly Withdrawn or rewoved by the said drectorl
prior to the expiration Of this charter, with th'
previous assent Of Congress: Prouidcd, in re-
spect 10 any State which shall not. at the fra
session Of the Legislature thereof, held afte
the passage of this act, by resolution, or othe
uSual legislative proceeding, unconditional
assent or dissent 10 tho establishment Of sue
Office or offices within it, such assent Of III
said State shall be thereafter presumed: An
provided, nerertbclcss, That whenever it cha
become necessary and proper for carrying int
execution any Of the powers granted by th
Constitution, to establish an Office or Office
in any Of the States whatever, and the estab
lishment thereof shall be directed by law,
shall be the duty Of the said directors to OStab
Iish such office or Offices accordingly"
Il will be seen that by this clause the direct
ore are inverted with the fullest power to o.
tabl.sh branch in any State which has yield