Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1845-06-14
NATIONAL INTELLIGENCER.
THE LATE BANK OF THE UNITED STATES


United States with the Bank Of The United States
ofPemsytUania and making the former answera-
bic for all the errors and msdongs and the unsas-
fled responsibilities of the latter
Nor need we wonder at the error of foreigners
and people at distance in this matter, when we
find SO many OF our own countrymen very sufli-
GENTLY mystifed upon this subject. The alleged
folly and wickedness of :. THE MONSTER has FORM
ed large part OF the capital of many of our trading
politicians, who have endeavored TO confuse, instead
of exerting themselves TO inform, the public mind
upon this subject
The present calm in politics being favorable for
the dispassonate consideration of such questions as
depend upon plain statements of facts avail our
selves of it to give brief history of the Bank of the
United States.
On the 10th of April, 1916, the late Bank of the
United States was incorporated by Congress for
twenty years, or until the Sd of March, 1886, with
a capital of thirty-fve millions of dollars Seven
millions part of this amount was subscribed by the
United States, the remaining twenty-eght millions
by individuals. The General Government was
therefore interested to the amount of twenty per
cent Tor one-fifth part in the institution. The bank
paid the Government million five hundred thou
sand dollars for the exclusive privileges and bene-
fits conferred by the act of incorporation.
The bank, no doubt, like all other human institu-
tons, mixed up certain quantity of error in some
of its operations and some of its early proceed
ings were obviously deserving of censure. Party
violence, however, has not hesitated to make the
most of these errors nor stopped short of pouring
out very ample measure of condemnation up
on these mlsdoings. 1t is certain, however, that
the latter half of the time of Incorporation of the bank
say from July, 1926, to the termination of its char
ter exhibits abundant proofs of good management
for it paid half-yearly dividends of three per cent
until July, 1928, and from that time until its close
its half-yearly dividends were three and half per
cent Its stock was therefore very good in
vestment.
1t was evident, for considerable time previous
to the term of its legal existence that strong effort
would be made to prevent its being rechartered.
President JACKSON avowed his hostility to the bank
in his annual messages TO Congress in 1929 and
$780, and in the latter he unequivocally stated his
preference for bank to be organized as a branch
of the Treasury Department In 1891 he reiterates
his objections. The Secretary of the Treasury,
(Mr. McLANE,) in his annual report accompanying
the message of 1891, however, expressed an opin-
ion that such institution the bank was inds-
pensaby necessary for the fiscal operations of the
Government in all its parts, and for the regulation
and preservation of a sound currency" &C., and
asserted that the bank had strong claims upon the
consideration of Congress in its future legislation"
This was great praise from high and good authori-
~. The bank pstitioned for recharter in Janua-
ry 1892, and bill to that effect passed both Houses
of Congress in July of that year. but it was vetoed
by the President.
Gen. JACKSON continued to evince his hostility to
the bank in his message of December, 1892, and
recommended Congress to investigate how far the
public deposites were safe in the keeping of the
bank. Mr.. McLANE, as Secretary of the Treasu-
ra,n I,t
tee of Ways and Means, Of which Mr.VERpLANcK
was chairman, after long and full investigation,
concluded its report with recommending the adop-
ton of the following resolution:
Resoped, That The Government deposites may in the
opinion Of this House, be safely continued the Bank
United States"
Mr.. Polk and two other members OF the commit
tee made minority report on the subject.
The above resolution adopted by the House
the I'd of March, ls33-Y cas- 100, nays as.
Notwithstanding this strongly expressed conf
dence in the bank on the part of the House of Re-
representatives., General Jackson caused the Govern
ment depostes to be removed from the bank on the
goth September, 1893, alleging that 1T was not
necessary that the deposites should be unsafe in
order to justify their removal but that il was the
duty of the Secretary of the Treasury to withdraw
!. them whenever the change would in any degree
: promote the public interest" Mr.. TANEY was
the Secretary of the Treasury when the transfer
was made. The bank demonstrated against the re-
moval as breach of faith on the part of the Gov
eminent, and the matter was, on the 18th Deem
ber 1888, referred to the Committee of Ways and
Means. very warm and protracted debate took
place in the House of Representatives in the spring
Of 1894, during which Mr.. McDUFFIE moved for
instructing the Committee of Ways and Means to
report bill 10 restore the deposites. vote was
taken on the whole subject of the bank on the 4th
of April, 1894 when the following resolutions were
agreed to
Resocd That the Bank Of the United States ought not
to be recharered'-Yeas 1874, nays 50.
Resolved That the public depoStes ought not to be
stored to the Bank Of tho United States 49, nays l03
Resolved That the State Banks ought to be continued
the places Of deposi,e Of the public money III,
nays los.
Early in 1894 the bank was required by the Exc
cutive to transfer the money and books of the pen
sion fund to the Girard Bank. This the bank re-
fused to do resting its refusal on question of law
House of Representatives on the 18th February, and
referred to the Committee OF Ways and Means.
A bill was brought into the House by Mr.. Polk
on the 18th December, 1884, repeating all the pow
and duties OF the President and Directors Of the
bank commissioners of loans
On the 10th of January, 1895, Mr.. Polk brought
IN bill "suspending condtionally the receipt Of
the notes Of the Bank Of the United States in pay
ment OF debts due to the United States !" repeating
IN TACT the l4th section of the bank charter which
enacted that its bills or notes should be receivable
m all payments to the United States.