Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-09-20


provide for the better collection, safe keeping and
disbursement of the public revenue by means OF
Corporation, to be styled the Fiscal Corporation o.
the United Stdies.' In STYLE then, is plainly ma
tional in its character Its powers, functions, ana
duties, are those that pertain to the collecting, Keep
ing, and discussing, the public revenue. The
means by which these IRE to be exerteh, IS q Cor
poraion, to be styled the Fiscal Corporation OF
the United States. IT is corporation created by
the Congress of the United States, in its charoc'
ter Off national legislature for The whole Union, to
perform the fiscal purpose, meet the PScdt wants
aud oxigences, supply the fiscal uses, ana exert
the fiscal agencies of the treasury oil Tie United
States.
Such is its own description OF ilsell. DO its
provisions contradict its own lllle! lhey 40 not
1t is true, that by lis first section PROVIDES mat II
shall he established in the District OF Columbia
but The amount of its capital i the manner III
which it's stock is to lie subscribed for and held
the persons and bodies corporate and polite by
whom its stock may be held--lhe appointment of
its directors aud their powers and dutes-its fun
damental articles, especially that to establish a
gencies in any part OF the Union--tle corporate
powers and business of such ogencies--lhe pro-
hbiton Of Congress TO establish any other corpo-
ration, with similar powers, fortweuty years, with
express Reservations in the same clause, to modify
or creute any bank in the District of Columbia, so
that the aggregate capital shall not exceed tive
millions without enumernIing OTHER features
which are equally distinctive and characteristic
clearly show that it cannot be regarded rs osher
than Bank of the United Siaes, viii powers
seemingly more limited than have heretofore been
granted by such an institution
Ii operates per Sc over the Union, by virtue of
the uilaided, and, in my view, assumed authority
Of Congress as NATIONAL legislature ns distlh-
guished from Bank created by Congress for the
District Of Columbia, as the local legislature of
the District. Every United States Bank hereto
Iore created, has had power TO deal in Bills OF
Exchange as well as local discounts. Bohswere
trading privileges conferred and both exercised
by virtue Of the aforesaid power of Congress over
the whole Union. The question OF power re-
mains unchanged without reference to The extent
of privilege grarcd. If this proposed corpora-
ton is to he regarded as Il local Bank of tie DIS
trit of Columbia, invested Ivy Congress with gen
eral powers TO operate over the union, II is Oh
noxious 10 still stronger objections. II assumes
that Congress may invest local institution WIN
general or national powers. WIN the same pro,
priety that it may do this in regard to Bank OF
the District Of Colunbin IL may US to State
Bank VET who can indulge the idea that this
Government can rightfulIy, by making State
Bank lis fiscal agent, invest it with the absolute
and unqualified power conferred by lIIis bill
When come to look to the details OF the bill,
they do not recommend il strongly To my adop-
ton. A bief notice of some of its provisions
will suffice:
ls 1t may Justify substantially system of dis
counts ofthe ost Objectionable character. Ii is To
deal in bills of exchange drawn in one state aud
payable in another, without any restraint. The
bill of exchange may lave un unlimited term Ia
run, and its renewability is 10 where guarded a
gaust. 1t mny, in fact assume the most ohjec
ilonabe form of accommodation. 1t is not re-
qulrcd to rest on any actual, real substantial
change basis A drawer in one place becomes
the ucceptor in another, aud in turn the accept
may become the drawer upon Il mutual under
nj fln Ipl IN
mere local discounts under the name Of bills Of
exchange. hill ,!rawn AT Philadep ha on Cam
| den, New jersey at New York on a border town
in New Jersey-nt Cincinnati OH Newport Ken;
lucky, not to multiply other examples nigh fol
any thing in this bill 10 restiain it, become psmert
matter of local accommodations Cities thus rela
lively situated woulI possess advantages over cit
les otherwise situated Of so decided character
us most justly TO excite dissatisfaction.
Second There is no limit prescribed to lht
! premium in the purchase of bills Of exchange
thereby correctingnone of the evils under which
the community now labors, and operating mos
! inurlously upon the agricultural states, in which
| the inequalities in the rates Of eXchenge are more
severely felt. Nor are these tie only colsequen
ces: resumption OF specie payments by tht
hanks OF those States would be liable TO indefin
! tie postpOnemCnt-ior MS the operations OF iht
agencies of tue interior would chiefly consist il
selling bills OF exchange, or the purchases conlt
! only be made III specie the notes OF The bank
paying specie the State banks would either have
10 continue with their doors closed, or exist nj tn
mercy Of this national monopoly OF brokerage
| Nor can it be passed over without remark, thai
while the District Of Columbia is made The sen
Of The principal bank, lis citizens excluded
from all participation in any benefit it might at
ford, by positive prohibition on the bank from
all dIscounling within the District.
These are some Of The objections which prom
inently exist against the details of the bill. OH
~, Ia, Il ,,I Il
be Improbable TO dwell upon them. Suffice it Il
add that this charter is designed TO continue 70
twenty years without compeiior-lllat the dc
fGcts to which have alluded, being founded il
the fundamental law Of The Corporation, ire
yocable--and that if the objections be well found
ed it would be over hazardous to pass the bill in
! TO u law.
In conclusion, take leave most respectfully t
say, that have felt The most anxious solicitu'e l.
meet the wishes of Congress in the adoption OF
Fiscal agent, which, avoiding all constitutions
objection, should harmoniZe conflicting opinion!
Acluaed hy This feeling, ! have been ready t
Weld much in II spirit OF conc atom, To the npn
ions of others. And ii is with great pain that
now feel compelled 10 differ from Congress a SEQ
ond time in the same session. At the commence
menl OF this session, inclined from choice "a dc
ter TO the legislative will, submitted 10 COngre,
the propriety Of adopting Fiscal Agent wlicI
without Violating the Constitution, would sept
rate the public money from the Executive contru
perform the operurons Of the Treasury witho,
being burdensome 10 tie people, or incUnyeniel
or extensive to the Government
1t IS deeply 10 be regretted, That this Depart
ment Of the Government cannot upon conslt
tiomal grounds, concur with the Legislative Depdr
ment in this last measure proposed to attain tiTes
desirable ohjccs. Owing 10 the brief space be
tween the period Of the death of my lumcnte
predecessor aud my own installation into office,
was in fact, uoi left time 10 prepare and submit