The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-07-26
A BANK AND THE EXCHEQUER.-No

"A BANh AMI lf1E L.
No one has more perseveringly urged on
Congress the necessity for establishing an
agency which, by its operations, would facilitate
the transmission of funds from one part OF the
country to another-ad in the collection OF the
revenue and furnish an uniform currency-than
the President of the United States. These
opinions are expressed in his message OF the
extra session, and most forcibly repeated in his
message at the commencement of the present
In pursuance of previous pledge, he caused to
be presented to Congress plan OF Exchequer,
which we then thought, and still think, would
meet most happily these great objects 1t was,
however, assailed with unsurpassed violence on
the moment of its introduction-there seemed
to be fixed determination to give it no consl-
deration. It's features were misrepresented, and
its effects wholly misunderstood. charge no.
thing of factious purpose in all this, although
must confess my surprise and modification, as
an American citizen, at the fact that plan
elaborated by the President with so much care,
should not have received that consideration due
to him and his recommendations from co-ordl-
nate department of the Government. My pur-
pose is now to revive the consideration of that
subject, and to institute a comparison between
the Exchequer, as presented by Mr.. Forward,
and Bank of the United States.
pass over, designedly, the constitutionality
of Bank charter granted by Congress as the
possibility, now universally admitted, Of obtain
ing subscriptions to its stock if charter were
granted. Let US Imagine that Bank was now
incorporated, and that its stock had been taken,
the first question which propose 10 discuss is,
how long would it require for such an instilu-
country? This is certainly an important ques-
ton to be first settled The Wings at the late
election held out promises of Immediate relief
property was again to rise In prlce-the value OF
all things was to be advanced Those who
were in debt were to be afforded the means Of
payment. aud broad smile was TO light up the
face of the Land. These were the extravagan-
zas of an election campaign, and are, therefore.
not to be literally fulfilled. This is readily adj
mlted. 1t were better that false promises should
never be made false expectations are thereby
created, the non fulfllment of which, because of
the improbabty of doing so, is but too apt to
produce modification and disgust. But it is de-
sirable that as much good should be done as
possible, and in as short a time as possible
When, then, would Bank of the United
States realize any promise made by the Wings ?
We can only draw wisdom from the lessons
of the past What Bank would accomplish
can be best determined by what Bank has ac-
complished. Let US then look to the history of
the late Bank of the United States, and set
down in our memories the course of its opera
Information upon this subject is derived from a
source that cannot deceive us. Mr.. Spencer's
able report, as Chairman of the Committee of
Congress, appointed in 1919 to examine into the
condition of the Bank, is replcte with informa-
ton concerning i.
That Bank had capital of $4,000, 900,
consisting of $27 ,OOO0 900 Of Government stock
and 81, 900 900 in specie. 1t went into opera
in 1916. Its effects, for the first three years of
its operation, were every way injurious and
hnrtlul.
The State banks were in a state OF suspen-
sion produced by the war. While their notes
were not received BY the United States Bank,
its notes were eagerly clutched at by the State
banks. who made increasing demands Tor specie
upon il; and thus the circulation OF the bank
was limited to some Two or three millions 10 Its
notes. which were Immediately returned upon
II as soon as issued. The consequences were
most fatal to Itself and 10 the community. In
1919. money commanded in Philadelphia, three